Ashok Leyland Stock Soars 4% After Securing ₹297 Cr Order from Tamil Nadu Govt
Stock Price Surge After Major Order Win
Shares of Ashok Leyland Limited, one of India’s leading commercial vehicle manufacturers, witnessed a strong rally on Wednesday, surging nearly 4.5% on the Bombay Stock Exchange (BSE). This sharp upward movement came after the company announced that it had secured a substantial order worth ₹297.85 crores from Tamil Nadu State Transport Corporation (TNSTC).
At 12:29 p.m., the stock was trading at ₹205.2, reflecting a 3.7% increase from its previous closing price of ₹197.9. The company has delivered 31.3% returns over the past year and 7% gains in the last month, further strengthening investor confidence.
Details of the ₹297 Cr Order
According to a recent filing with the stock exchanges, Ashok Leyland has received an order for 300 fully built, 12-meter ultra-low entry rear-engine buses. These BS VI diesel-powered buses will be used for city operations and feature advanced iGen 6 BS VI technology with a powerful H-Series engine producing 184 kW (246 hp). The buses also come equipped with front and rear air suspension, ensuring improved ride comfort and durability.
This order win is another milestone in the company’s ongoing efforts to strengthen its footprint in the public transportation sector.
Recent Orders and Business Expansion
Ashok Leyland has been aggressively expanding its business and securing multiple high-value projects. Here are some of its recent major order wins:
1. Bangalore International Airport Project – ₹1,055 Cr (29th November 2024)
The company won a bid for the “Construction of Elevated Western Crossfield Taxiways (WCT), apron, and associated works” for Bangalore International Airport Limited. The project, valued at ₹1,055 crores, involves the construction of taxiway systems, pavement, drainage works, ancillary buildings, and other key infrastructure.
2. West Bengal Highway Development – ₹1,391 Cr (6th January 2025)
A wholly owned subsidiary of Ashok Leyland, Ashoka Bowaichandi Guskara Road Private Limited (SPV), signed a Concession Agreement with National Highways Authority of India (NHAI) for a 4-lane economic corridor from Bowaichandi to Guskara-Katwa Road Section (NH 116A). The approved project cost is ₹1,391 crores under the Hybrid Annuity Mode (HAM).
These recent orders reflect the company’s robust project pipeline and growing influence in India’s transportation and infrastructure sector.
Strong Financial Performance
Ashok Leyland has posted strong financial results, further boosting investor sentiment. The company recorded 8.2% year-on-year (YoY) growth in revenue, increasing from ₹11,092 crores in Q3 FY24 to ₹11,995 crores in Q3 FY25.
Meanwhile, net profit jumped by 36% YoY, rising from ₹560.2 crores to ₹762 crores. This impressive performance is attributed to higher vehicle sales, cost efficiency measures, and increased demand in both the commercial vehicle and infrastructure segments.
Key Financial Ratios and Market Data
| Metric | Value |
|---|---|
| Market Cap | ₹66,140 Cr. |
| Current Price | ₹225 |
| 52-Week High/Low | ₹265 / ₹158 |
| Stock P/E | 23.7 |
| Book Value | ₹35.1 |
| Dividend Yield | 2.20% |
| ROCE (Return on Capital Employed) | 15.0% |
| ROE (Return on Equity) | 28.4% |
| Face Value | ₹1.00 |
| Promoter Holding | 51.4% |
| Debt-to-Equity | 4.30 |
| Price-to-Earnings Ratio | 23.7 |
| Pledged Percentage | 30.1% |
| QoQ Profit Growth | 6.93% |
| Quarterly Profit Variation | 37.6% |
| Industry P/E | 17.4 |
| Graham Number | ₹87.3 |
| Intrinsic Value | ₹76.3 |
| Relative Strength Index (RSI) | 59.4 |
| Earnings Per Share (EPS) | ₹9.64 |
| No. of Equity Shares | 294 |
| PEG Ratio | 5.87 |
| 200-Day Moving Average (DMA 200) | ₹217 |
| Free Cash Flow (3 Years) | ₹-10,256 Cr. |
| Free Cash Flow (Latest Year) | ₹-7,346 Cr. |
About Ashok Leyland
Ashok Leyland Limited is one of the top 5 bus manufacturers globally and India’s largest bus manufacturer. It operates in multiple segments, including commercial vehicles, industrial and marine engines, forgings, and castings. The company has a strong presence in the domestic and international markets, with a reputation for delivering high-performance and fuel-efficient vehicles.
Conclusion: A Strong Future Ahead
With a strong order book, consistent financial performance, and an expanding presence in infrastructure projects, Ashok Leyland continues to be a promising stock for investors. The recent ₹297 crore order from the Tamil Nadu State Transport Corporation further solidifies its position as a market leader in the commercial vehicle space.
Investors and analysts remain optimistic about the company’s growth trajectory, as its focus on innovation, efficiency, and sustainability continues to drive long-term value.
Key Takeaway:
If you’re looking for a stock with strong fundamentals, consistent order wins, and a leading position in India’s growing transportation sector, Ashok Leyland remains an attractive investment opportunity.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.