Ashok Leyland, a prominent player in the automotive industry and part of the Hinduja Group, has announced significant developments within its defense segment. The company has secured multiple orders exceeding ₹700 crore for the supply of vehicles to the armed forces, enhancing its portfolio dedicated to troop transportation, logistics, and mobility solutions, particularly in alignment with the Close-in Weapon Systems (CIWS) program.
With these new contracts, Ashok Leyland solidifies its standing as a leader in advanced land mobility solutions tailored for India’s armed and paramilitary forces. According to a filing made to the Bombay Stock Exchange (BSE), the awarded contracts encompass a variety of specialized vehicles including the Stallion 4×4, Stallion 6×6, Short Chassis Bus, and Mobility System Travelling Platform. Each of these vehicles is crafted to deliver high reliability and outstanding off-road performance, essential for navigating India’s challenging terrains while fulfilling diverse operational needs.
In light of this positive news, Ashok Leyland’s stock performance tells a different story. On the trading day following the announcement, shares experienced a decline of 0.79%, closing at ₹207. Although the stock remained above its 10-day Simple Moving Average (SMA), it fell short of surpassing other key SMAs, including the 5-day, 20-, 30-, 50-, 100-, 150-, and 200-day averages. The 14-day Relative Strength Index (RSI) registered at 47.10, reflecting a neutral sentiment among investors. Trading volume was notably subdued, with approximately 1.63 lakh shares exchanged—significantly lower than the two-week average of 3.55 lakh shares. The day recorded a turnover of ₹3.37 crore and a market capitalization of ₹60,859.53 crore.
Examining the fundamentals of the company, Ashok Leyland holds a P/E ratio of 20.58, a P/B value of 6.03, and an Earnings Per Share (EPS) of 10.07. Additionally, the company boasts a strong Return on Equity (RoE) of 29.31%. However, it carries a high volatility factor with a beta of 1.6 over the past year, indicating fluctuations in its stock price.
In other news, Ashok Leyland addressed rumors regarding the acquisition of a promoter’s stake in SML Isuzu, specifically ownership held by Japan’s Sumitomo Corporation. The company clarified that such reports were inaccurate and emphasized its commitment to transparency in reporting material information in accordance with regulatory guidelines. “As a responsible corporate entity, the company promptly discloses any material information under applicable regulations and will continue to do so in the future,” it stated.
The current shareholding pattern shows that as of December 2024, promoters maintain a 51.52% stake in Ashok Leyland, which underscores their confidence in the company’s ongoing growth and performance.
With its focus on enhancing defense capabilities and maintaining transparency, Ashok Leyland is strategically positioned to play a pivotal role in India’s defense and automotive landscapes.
