Sales Disappoint After Rally
Ashok Leyland Ltd. saw its stock price retreat significantly from daily highs, shedding as much as 7% on Wednesday, April 1. The decline followed the release of its March sales figures, which fell short of market expectations. Overall vehicle sales for the medium and heavy commercial vehicle (M&HCV) producer climbed 5% year-on-year to 25,381 units. This figure contrasts sharply with the 15% growth projected by a CNBC-TV18 poll, which had anticipated sales of 27,750 units.
Segment Performance Weakens
The company's M&HCV truck segment posted an 11% increase in sales, reaching 14,470 units. However, the bus segment experienced a notable downturn, with sales falling 24% compared to the previous year, totaling 3,048 units. Overall M&HCV sales saw a marginal 3% year-on-year growth to 17,518 units. Light Commercial Vehicle (LCV) sales performed better, up 12% to 7,863 units. Critically, the growth rates across key segments lagged their respective three-month averages, with truck segment growth at 11% compared to a 37% average, and LCV growth at 12% against a 25% average. The bus segment's 24% decline marked its steepest drop in several months.
Stock Reverses Gains
These results contrast starkly with Ashok Leyland's performance in preceding months, which had driven its shares to 52-week highs in February, even surpassing the ₹200 mark. In the 31 trading sessions prior to Wednesday, the stock had already corrected by approximately 30% from those peaks. Trading at ₹151.75 on Wednesday, the stock was down 1.5% for the day, continuing its downward trend from the day's highs. The 52-week high was recorded at ₹215.75 on February 11 this year.