Ashok Leyland's stock gains 4% after company reports higher sales

Ashok Leyland's stock gains 4% after company reports higher salesThe shares of India's second largest commercial vehicle maker, Ashok Leyland gained 4% to Rs 54.20 at 9:15 IST after the company announced that its sold 7,871 units in January 2010 a rise of 222% over January 2009.

The company made the announcement after market hours on Wednesday 3 February. Its shares touched a high of Rs 54.40 and a low of Rs 52.35 so far during the day even as the benchmark BSE Sensex dropped 70 points, or
0.41%, to 16426.. Yesterday the share closed 3.57% or Rs 1.80 up at Rs 52.15.

Earlier the stock had hit a 52-week high of Rs 56.80 on 14 January 2010 and a 52-week low of Rs 13.80 on 3 February 2009. Its stock gained 5.25% in the past one month while Sensex fell 5.55% during the period. As for the quarter, the stock gained 12.88% as against 7.08% rise in the Sensex.

Ashok Leyland has an equity capital of 133.03 crore while the face value of each share is Rs 1. At current rate the stock discounts EPS of Rs 3.15 of the third quarter by 17.22.

The company recorded 268% rise in domestic sales to 7,460 units in January 2010 over 2009. The exports on the other hand fell 1.67% to 411 units in the month.

The net profit of the company rose 453.9% to Rs 104.63 crore in the third quarter of the current financial year over same quarter in 2008. The sales of the quarter rose 80.7% to Rs 1815.53 crore over the third quarter of 2008.

Ashok Leyland is involved in manufacturing commercial vehicles and spare parts along with special vehicles and engines for industrial, generators, marine requirements and automobile spare parts.

The promoters currently hold 38.61% share in the company. And have pledged 23.70 crore shares representing 17.82% of the equity capital of the company.