Ashok Leyland stocks hit 52-week high today: What's the reason?
What's the story
Ashok Leyland's shares have hit a 52-week high today, extending a two-day rally that has surprised the market. The commercial vehicle manufacturer's stock rose up to 2.7% to ₹164.50 on the Bombay Stock Exchange (BSE). This added to Monday's over 1% gain and takes the total increase to nearly 4% in just two trading sessions.
Sales surge
November sales and financial performance boost investor confidence
The recent rally in Ashok Leyland's shares is driven by strong investor confidence in the company's monthly sales growth and financial performance for the September quarter. The company registered total sales of 18,272 units in November, a whopping 29% increase from 14,137 vehicles sold during the same period last year.
Market dominance
Domestic market demand drives sales growth
The domestic market continued to dominate Ashok Leyland's sales, with 16,491 units sold in November. This is a 32% increase from the 12,473 units sold in November 2024. The company's domestic portfolio includes M&HCV trucks (8,576 units), buses (1,662 units), and LCVs (6,253 units), highlighting its strength across different segments.
Financial stability
Ashok Leyland's revenue and net profit
In the September quarter, Ashok Leyland's revenue grew by 9.3% to ₹9,588 crore, aided by an 8% year-on-year increase in volumes and an 11% sequential rise. The company's net profit remained stable at ₹771 crore, the same as last year despite a one-time loss of ₹40 crore against a one-time gain of ₹117 crore in the same period last year.
Share performance
Shares have surged 46% in 2025
Ashok Leyland's shares have witnessed a massive 46% surge so far in 2025, rising by 25% over the last three months and gaining an impressive 15% just last month. This momentum was further fueled by today's rally.