Ashok Leyland secures 'single largest order' from MSRTC; stock climbs 2%

Domestic automaker Ashok Leyland Ltd on Monday announced it bagged single largest fully built bus order from the Maharashtra State Road Transport Corporation (MSRTC) for 2,104 units of Viking passenger buses worth Rs 981.45 crore. The Indian flagship of the Hinduja Group said the order win will further contribute to strengthening its dominant position in the bus segment.

"Maharashtra State Road Transport Corporation (MSRTC) is one of the largest state transport undertakings in the country with over 15,000 buses. With this order, Ashok Leyland buses will dominate its fleet. These modern, fully built buses will be fully compliant with the latest CMVR standards, will feature AIS 153 compliant body, and will have the proven iGEN6 BS VI OBD II technology with 197 HP H-Series Engine, and Rear Air Suspension, among other significant features," it stated in a BSE filing.

These buses will be manufactured at Ashok Leyland's exclusive bus body plants with state-of-the-art technology, and will offer enhanced safety, improved comfort, and a lower total cost of ownership for MSRTC, the bus manufacturer added.

Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said, "We are excited to continue our long-standing partnership with the Maharashtra State Road Transport Corporation (MSRTC). This new order underscores our dedication to producing highly efficient and technologically advanced products, driving the growth of public transportation in the country. Our deep understanding of our customers and our ability to quickly respond to their needs is what sets us apart."

On the stock-specific front, Ashok Leyland shares were last seen trading 1.56 per cent higher at Rs 227.90. At this price, the stock has risen 33.16 per cent on a year-to-date (YTD) basis.

The counter was trading higher than the 5-day, 50-, 100-, 150-day and 200-day simple moving averages (SMAs) but lower than the 10-day, 20-day and 30-day SMAs. The counter's 14-day relative strength index (RSI) came at 48.91. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 25.54 against a price-to-book (P/B) value of 7.59. Earnings per share (EPS) stood at 8.92 with a return on equity of (RoE) 29.71.

As of March 2024, promoters held a 51.52 per cent stake in Ashok Leyland.