Ashok Leyland Shares Surge on Strong Buying Interest. |
Mumbai: Shares of Ashok Leyland rose sharply on December 2, climbing 2.68 percent intraday to a 52-week high of Rs 164.49 on the NSE. On the BSE, the stock recorded a similar gain. Over the past week, the Chennai-based commercial vehicle maker’s shares jumped 14 percent, significantly outperforming the NIFTY50 index, reflecting strong investor interest. The stock has risen in five of the last six trading sessions.
Robust November Sales Boost Investor Sentiment
The rally comes on the back of impressive November sales figures. Ashok Leyland sold 16,491 units, a 32 percent increase from 12,473 units sold in the same period last year. Domestic sales of medium and heavy commercial vehicles rose 30 percent to 8,576 units, while bus sales jumped 27 percent to 1,662 units. Light commercial vehicles witnessed the highest growth, climbing 37 percent to 6,253 units.
Merger With Hinduja Finance Sparks Optimism
The company recently announced that its board approved a merger by absorption of Hinduja Finance Limited into NDL Ventures. Under the scheme, 25 equity shares of NDL Ventures will be allotted for every 10 equity shares held in Hinduja Finance. The merger, effective from April 1, 2026, aims to tap growth opportunities in the non-banking finance sector and create shareholder value, further boosting market confidence.
Strong Quarterly Performance Supports Gains
Ashok Leyland reported a net profit of Rs 771 crore in Q2FY26, a slight 0.13 percent increase from Rs 770 crore in the previous year. Revenue from operations rose 9 percent to Rs 9,588 crore, while EBITDA jumped 14 percent to Rs 1,162 crore, improving the EBITDA margin by 50 basis points to 12.12 percent. The solid operational performance has strengthened investor sentiment, helping the stock outperform the midcap index.
The combination of strong sales, a promising merger, and stable quarterly results has driven Ashok Leyland shares to new highs, keeping investors optimistic about future growth in both the commercial vehicle and NBFC sectors.
Disclaimer: This article is intended solely for informational purposes. The Free Press Journal recommends that readers should not treat it as financial advice and should consult professional advisors before making any investment decisions.
