Ashok Leyland Gains Close To 2% On Huge Order Win For Electric Buses

Shares of Ashok Leyland in trade on Friday (August 12, 2022) surged over 2% to day's high price of Rs. 149.1 per share on the NSE. On the previous day, its shares closed at Rs. 145.85. The commercial vehicles company's scrip is trading close to its 52-week high of Rs. 158.25 hit on August 1, 2022.

As per media sources, Switch Mobility, a subsidiary of Ashok Leyland in the field of e- mobility has entered into an agreement with Chalo (app based public transport aggregator) to supply more than 5,000 electric buses over a period of 3 years. Order value for the
same is pegged at around US$1 billion and is likely to be executed on gross cost contract (GCC, Rs./km) basis.

As per ICICI Direct, "This is a big order win for the company leading to further consolidation of its market share in the domestic bus
segment. The key monitorable, however, going forward, will be the fund raise by its EV division to augment its capacity as well as
capabilities in the e-mobility domain.

Ashok Leyland is engaged in the manufacture of commercial vehicles and allied components. Ashok Leyland is a mid-cap company with a m-cap of Rs. 43,680 crore.