On July 17, Ashok Leyland, the second-largest commercial vehicle manufacturer in India, revealed that it secured a significant order worth Rs 800 crore from the Indian armed forces.
The company’s release emphasized that Ashok Leyland is the primary provider of logistics vehicles to the Indian Army.
Of the various contracts awarded to Ashok Leyland, the agreements to produce the Field Artillery Tractor (FAT 4×4) and the Gun Towing Vehicle (GTV 6×6) hold special significance, as they were prominently featured in the initial positive indigenization list declared by the Government of India.
Ashok Leyland Got Defence orders
Shenu Agarwal, the Managing Director and CEO of Ashok Leyland, expressed gratitude for the government’s confidence in the automotive brand while commenting on this development.
Also Read: Indian Army orders 1850 Units of Powerful Mahindra Scorpio Classic SUV
“Ashok Leyland has made substantial investments in the development of mobility platforms, including 4×4, 6×6, 8×8, 10×10, and 12×12 configurations, catering to diverse applications and operational needs of the Indian Armed Forces,” stated Amandeep Singh, the President of the company’s defense business.
These platforms are designed, developed, and manufactured domestically by Ashok Leyland, contributing to the reduction of imports in the defense sector.
Himanshu Singh, an analyst at Prabudhas Liladher Pvt, mentioned, “Ashok Leyland aims to expedite its defense business growth in the next three years, targeting tender wins of over Rs 3,500 crore, compared to the Rs 2,000 crore achieved in the past five years.”
The company boasts an impressive tender win rate of over 80% in land mobility tenders, and a higher proportion of defense business will assist in mitigating business cyclicality, he added.
As of 12:20 pm, shares of Ashok Leyland increased by 1.08% to Rs 173.60 apiece, outperforming the 0.36% gain in the NSE Nifty 50.
The trading volume in the day has reached 1.7 times its monthly average.
According to Bloomberg data, out of the 46 analysts tracking the company, 36 maintain a ‘buy’ rating, six recommend a ‘hold’, and four suggest a ‘sell’. The average 12-month consensus price target indicates a potential upside of 3.6%.
About Ashok Leyland
Ashok Leyland is one of the leading manufacturers of commercial vehicles in India. The company was founded in 1948 and is headquartered in Chennai, Tamil Nadu. Ashok Leyland is a flagship company of the Hinduja Group and has a strong presence in the automotive industry.
The company specializes in the production of a wide range of commercial vehicles, including trucks, buses, and light commercial vehicles. Ashok Leyland has established itself as a major player in the Indian market and has also expanded its presence globally, exporting its vehicles to various countries.
Ashok Leyland is known for its focus on innovation and technology. The company has invested in research and development to develop advanced vehicles that meet the evolving needs of its customers. It has also been actively involved in the development of sustainable and eco-friendly technologies, such as electric and hybrid vehicles.
Apart from the commercial vehicle segment, Ashok Leyland also has a presence in the defense sector. The company provides a range of specialized vehicles for defense applications, catering to the requirements of the Indian Armed Forces.
Over the years, Ashok Leyland has received numerous accolades and awards for its products, manufacturing excellence, and contributions to the automotive industry. The company continues to be a prominent player in the commercial vehicle market, contributing to India’s transportation infrastructure and economic growth.
