Ashok Leyland shares dipped marginally in early trade on December 13, despite securing a substantial order worth Rs 345.58 crore from the Tamil Nadu State Transport Corporation (TNSTC).
Details of the Order
The order involves the supply of 1,475 BS-VI diesel passenger bus chassis to TNSTC. Deliveries are scheduled between December 2024 and May 2025. This large order reinforces Ashok Leyland’s strong foothold in the public transportation segment.
At 9:33 am, the stock was trading at Rs 228.75 on the BSE, down 0.48%.
Other Updates
- Subsidiary Closure: Ashok Leyland’s step-down subsidiary, LLC Ashok Leyland Russia, has been voluntarily liquidated as part of restructuring efforts.
- EV Push by Switch Mobility: The company’s electric vehicle (EV) arm, Switch Mobility, is focusing on building battery packs, motors, and other critical EV components in-house to meet the rising demand for electric buses in India.
- Strong Performance:
- Ashok Leyland reported a 37% jump in net profit to Rs 770 crore for the quarter ending September 30, 2024.
- November sales rose marginally by 1% to 14,137 units.
- In October, its subsidiary, OHM Global Mobility, secured an order for 500 ultra-low floor electric buses for Chennai’s Metropolitan Transport Corporation.
Market Sentiment
The marginal decline in Ashok Leyland’s share price might reflect profit booking or market caution, despite its strong order pipeline and consistent growth. Analysts expect the company’s focus on electric vehicles and large government orders to bolster its performance in the long term.
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Source: Moneycontrol
News Desk
