Home / Markets / Mark To Market /  Ashok Leyland shares at new 52-week high as co bags bus orders in UAE

Ashok Leyland Ltd’s shares rose nearly 5% in Thursday’s morning trade on the National Stock Exchange, with stock hitting a new 52-week high of 161.60 apiece. This is on a day when the broader markets were weak and the benchmark Nifty50 index declined marginally.

The excitement around Ashok Leyland comes on the back of news reports that the company’s UAE distribution partners-- Swaidan Trading – Al Naboodah Group-- bagged orders for 1,400 school buses in the country. The total fleet deal is worth AED 276 million or $75.15 million.

The order constitutes 55-seater Falcon bus and 32-seater Oyster bus. Most of the buses will be supplied to Emirate Transport and STS Group, said the company. The products will be made in the UAE assembly plant. Ashok Leyland has a $50 million state-of-the-art manufacturing facility in Ras Al Khaimah, UAE. This is the only certified local bus making facility in the entire Gulf Cooperation Council region.

This plant, which has an installed annual capacity of 4,000 buses, is a joint venture between Ashok Leyland and the Ras Al Khaimah Investment Authority, UAE.

The management said that factors such as the lowest total cost of ownership and strong after-sales support differentiate them and aid the company in winning orders. In FY22, Ashok Leyland sold 7,799 units in the medium & heavy commercial vehicle bus segment.

Further, the automaker plans to enhance its portfolio in the light commercial vehicle segment.

Meanwhile, Ashok Leyland is set to announce its August sales volumes today. Analysts at Motilal Oswal Financial Services expect the automaker to report sales volume of 14,198 units. This represents year-on-year growth of nearly 52% and sequential growth of 4.2%

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