Ashok Leyland's defence Business bags multiple orders worth Rs 700 crore. Details here

Ashok Leyland, the flagship entity of the Hinduja Group, on Friday said its defence business secured multiple orders valued more than Rs 700 crore to supply vehicles. "The vehicles to be supplied under these orders are to fulfil Defence sector needs of troop transportation, logistics, and other specialised mobility requirements under the Close-in Weapon Systems (CIWS) program. With these new orders, Ashok Leyland further solidifies its position as a leader in advanced land mobility solutions for the Armed and Paramilitary Forces," the company stated in a BSE filing.

"The recently awarded contracts encompass a diverse range of specialised vehicles, including the Stallion 4x4, Stallion 6x6, Short Chassis Bus, and Mobility System Travelling Platform. These vehicles combine superior reliability with exceptional off-road capability, ensuring seamless manoeuvrability across country’s most demanding terrains, meeting a variety of operational requirements," it added.

On the stock-specific front, Ashok Leyland traded lower despite the order win announcement. Last checked, the stock was down 0.79 per cent at Rs 207.

Around 1.63 lakh shares changed hands today at the time of writing this story. The figure was lower than the two-week average volume of 3.55 lakh shares. Turnover on the counter came at Rs 3.37 crore, commanding a market capitalisation (m-cap) of Rs 60,859.53 crore.

The stock traded higher than the 10-day simple moving averages (SMA) but lower than the 5-day, 20-, 30-, 50-, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 47.10. 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 20.58 against a price-to-book (P/B) value of 6.03. Earnings per share (EPS) stood at 10.07 with a return on equity (RoE) of 29.31. According to Trendlyne data, Ashok Leyland has a one-year beta of 1.6, indicating high volatility.

Separately, the automotive manufacturer recently denied reports of acquiring the promoter's stake (Japan's Sumitomo Corporation) in SML Isuzu. "The company would like to outrightly deny this news as factually incorrect. Kindly take the above on record and disregard any misleading information that may have been circulated in the media. The company always promptly discloses any material information requiring it to make disclosures (under the applicable regulatory requirements) and will continue to do so in the future as well," it stated.

As of December 2024, promoters held a 51.52 per cent stake in the company.