Ashok Leyland is an Indian-origin multinational automobile manufacturer. It was founded in 1948 with the name Ashok Motors and is owned by the Hinduja Group. It is a prominent automotive company, being the second-largest commercial vehicle manufacturer in India and the tenth-largest in the world. Its products range from buses, defense vehicles, Engines etc.
Leading the commercial vehicle segment
The company has always been at the forefront and has made a place for itself in a competitive market. Recently, its growth expansion can be witnessed in various aspects with a rise in the stock price.
Road transport services are the pillar of India’s trade and commerce. To enable safe and convenient transport of goods to the Indian market, Ashok Leyland has been producing automobiles that are up to the standards, well-built and reduce emissions. Currently, Ashok Leyland has an astonishing 67.17% market share in India’s commercial vehicle segment.
It has been providing electric vehicles as an alternative to fuel vehicles to support sustainable solutions. It is focusing on hydrogen-based technologies for medium and heavy-sized vehicles. Since its products are for long haul they won’t operate on battery technology. At the moment, the company has electric options in light and intermediate trucks and medium buses. It is working on a hydrogen internal combustion engine (H2 ICE) as well as a fuel cell electric vehicle (FCEV).
Reach of Ashok Leyland
Ashok Leyland has a global reach with manufacturing facilities in locations such as Nigeria, UAE, Kenya, Bangladesh, Leeds, Spain, etc. Apart from the Indian army, it also partners with armed forces across the globe.
The company has been working with the Indian Army for more than three decades. Last year, it secured a Rs. 800 crore contracts with the defense to be delivered over a period of 12 months. In 1996, it started producing 4×4 stallions and has been providing it to the army ever since. These army trucks are stable, sturdy and durable. It completes the armored, logistics and mobility needs of the defense.
Ashok Leyland Stock on Rise
The company’s share is at an all-time high. With a growing dividend yield and price-to-earnings ratio, it shows robust growth. In FY 23, it reported a revenue of Rs. 41,783 crores. In Q4 of FY 2024, it showed strong and substantial numbers and thus its shares are on the rise. In the first quarter of 2024 when most of the FIIS are de-investing their money from Indian stocks, Ashok Leyland saw an increase in the FIIS from 20.48% to 21.45%.
Within 3 years of time, their sales increased from 5,954 crores (Dec 2020) to 11,093 crores (Dec 2023). In the same time frame, their profits increased from 38 crores (Dec 2020) to 609 crores (Dec 2023)
Initiatives of Ashok Layland
The company offers multiple loyalty programs such as Retailer Club, Mechanic Club, ReferrAL, and Elite by Ashok Leyland. These programs are innovative, fresh and tailored to suit their community.
The company is focused on bringing change and improving people’s lives for the good. Its contribution towards society through CSR has been noteworthy. In FY 23 it was mandated to spend Rs. 0.11 crores whereas the actual expenditure made by the company was Rs. 15 crores. One of its prominent projects under CSR is the initiative ‘Road to School’ which is a holistic child development program.
The company is taking steps in the right direction with significant efforts towards ‘Make in India’, environment-friendly practices, providing strong after-sale services, etc. It has become synonymous with trust and is constantly making technological advancements.
Due to a significant global presence, the risk of economic downturn in a single market is reduced. The company is projected to continue to grow because of its ongoing projects and future endeavors.