Shares of Ashok Leyland surged 6.65 percent on Friday, June 16, after the company's management delivered an optimistic assessment of the business outlook during an investor meeting held on Thursday.
During the meeting, the company's management expressed their ambitious goal of capturing a market share of 35 percent in the intermediate commercial vehicle segment in the upcoming year.
During Friday’s trade, the stock opened at a price of Rs. 159.70 per share against the previous close of Rs. 157.35 per share and grew further during the early trading session to touch an intraday high of Rs. 167.80 per share.
It was trading at ₹167, up by 6.13 percent at 11:15 a.m. on the NSE.
The stock touched a 52-week-high of Rs. 169.45 on September 06, 2022 and a 52-week-low of Rs. 128.20 on June 17, 2022, indicating that at the current level, the stock is trading 29 percent above its 52-week low and just 2.3 percent below its 52 week high.
The stock has grown over 8 percent in the last one month. Moreover, in the past six months, it has increased by nearly 17 percent. Furthermore, the stock has yielded a positive return of almost 27 percent in the last five years.
Ashok Leyland has outlined its growth plans in the commercial vehicle market segment. The company aims to expand its truck share from 25 percent to 35 percent in the intermediate commercial vehicle segment. Additionally, it has set a target of doubling its share from 15 percent to 30 percent in the intermediate bus segment.
In the medium-duty commercial vehicle space, Ashok Leyland is determined to improve its truck share to 40 percent, a growth from the existing 35 percent. Furthermore, the company aims to maintain its strong position by defending its current 50 percent share in the medium-duty bus segment.
In other news, Ashok Leyland and AI solutions expert Aidrivers have joined forces to develop autonomous electric terminal trucks specifically designed for the port industry. This collaboration is driven by the shared objective of meeting the industry's net zero emissions targets.
By combining their knowledge and expertise, the companies aim to create a sustainable solution for autonomous transportation. The initial fleet of these innovative vehicles is projected to be operational in the early months of the upcoming year. These trucks will be manufactured at Ashok Leyland's production facilities.
Global brokerages Morgan Stanley and JP Morgan have assigned an "overweight" rating to the stock with a target price of ₹178 and ₹175 per share respectively.
Domestic brokerages Motilal Oswal, JM Finance and Nuvama, on the other hand, have a "buy" rating on the stock and foresees a potential increase of up to 14 percent from the current market price, with a target of ₹180 per share.
Ashok Leyland Limited is an India-based automotive and transport vehicle company. The company is engaged in the manufacture and sale of commercial/passenger and defense vehicles and power solutions.
According to a MintGenie poll, an average of 39 analysts have a ‘BUY’ call on the stock.
