InvestorQ : Why have the Ashok Leyland shares done so well on 25 June in the markets?
Mitali Bhutta made post

Why have the Ashok Leyland shares done so well on 25 June in the markets?

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2 months ago
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Chennai based Ashok Leyland rallied by 9% on Friday 25 June to touch a high of Rs.130 after it announced its quarterly results. ALL reported 80 bps improvement in its market share at 28.9% in the highly competitive CV market. On a sequential basis, the medium and heavy commercial vehicles or the MHVC truck volumes grew 57%, bettering the industry average by 400 bps. The yoy growth in the truck volume stood at an impressive 111% for ALL.

Even quarterly results were very impressive. Ashok Leyland reported 82% growth in revenues to Rs.7,000 crore in the fourth quarter while the PAT was at Rs.242 crore against a net loss of Rs.57 crore in the Mar-20 quarter. Interestingly, the EBITDA margins of ALL expanded from 4.8% to an impressive 7.6%. ALL is shifting its focus to electric vehicles and customer solutions. Trading volumes on the counter also more than doubled.

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