Ashok Leyland
M Cap: Rs 5,315cr
Average delivery volumes in the Ashok Leyland stock were 12 per cent lower in the last fortnight at about 22 lakh shares, which is still high compared with the average 22.8 lakh shares in the previous fortnight, while the price increased about 15 per cent during this period. The positive activity came on hopes of a possible recovery after one of the worst quarters for the second largest commercial vehicle maker in the country and the flagship company of the Hinduja Group. The company plans to increase its capacity from the current 1.05 Iakh vehicles to more than 1.5 Iakh vehicles with additional capacity at its new plant in Uttarakhand by the end of FY10. The location, it has been reported, will benefit the company by way of tax exemption from excise and income-tax and the management believes this will help the company recover its investment within four years. “We believe Ashok Leyland’s strong foothold in the medium and heavy commercial vehicles segment, coupled with the iv with Nissan to foray into LCVs will aid the company’s volume growth,” Hitesh Kuvelkar of First Global said in a research note. The company profits fell 84 per cent to Rs 7.77 crore in the first quarter ended June 2009, from Rs 50.56 crore in the corresponding period last year. Total income fell by 48 per cent to Rs 973 crore from Rs 1,895 crore.
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