Ashok Leyland zooms 2% on Gujarat State Transport order for 1,282 buses

Shares of Ashok Leyland jumped nearly 2 percent intraday on September 29 after bagging orders for 1,282 buses from Gujarat State Road Transport Corporation (GSRTC).

At 12:38pm, the Ashok Leyland stock was trading 1.67 percent higher at Rs 177.10 on the NSE.

Ashok Leyland, the Indian flagship of the Hinduja Group and the country’s leading commercial vehicle manufacturer, on September 29 announced through a BSE filing that it has bagged an order for 1,282 fully built buses from GSRTC.

This order, one of the largest from a State Transport Undertaking for a single OEM, will contribute to strengthening Ashok Leyland’s dominant position in the Indian bus market.

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Under the terms of the order, Ashok Leyland will deliver the 55-seater fully assembled BS VI diesel buses in phases. These buses are designed to provide exceptional passenger comfort and will feature the advanced iGen6 BS VI technology, featuring a robust 147 kW (197 hp) H-series engine which, in turn, shall enhance safety and comfort, and reduce the overall cost of ownership (TCO), the notification added further.

Brokerage Views

Brokerage firm Prabhudas Lilladher assigned a ‘buy’ rating to the Ashok Leyland with a target price of Rs 225 in a recently released report. “We increase our FY24/FY25 EPS estimates by 12 percent/5 percent, to factor in 1QFY24 results and management commentary on volumes and margin sustainability,” it said.

Also Read: Ashok Leyland partners CSB Bank Ltd for vehicle financing

Stock Performance

The Ashok Leyland stock has given a return of 29.64 percent over the last six months. The benchmark Nifty50 index has given a return of 15.16 percent over the same duration.

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