Ashok Leyland moved higher by 2% to Rs 95.55, recovering 2.6% from early morning lows of Rs 93.10, after a huge block deal executed on the counter on BSE.
At 09:21 am; around 10.98 million equity shares representing 0.46% of total equity of Ashok Leyland have changed hand on the BSE in a single block deal, the exchange data shows.
The name of the buyers and sellers were not ascertained immediately.
In past one-week, the stock outperformed the market by surging 16% after the company reported adjusted net profit of Rs 440 crore in March quarter against Rs 513 crore in a year ago quarter. In comparison, the S&P BSE Sensex was up 2.9% during the period.
In a challenging environment (ban of BS3 vehicle), Ebitda (earnings before interest, tax, depreciation and amortization) margin expanded by 97bps QoQ to 11%, owing to cost control measures.
“Although Q1FY18 volume will be subdued, management is confident of double-digit volume growth in FY18, led by revival in mining and construction activities. The company is confident of maintaining double-digit margin,” HDFC Securities said in a results review.
The brokerage firm maintain positive stance, and expect 10% volume CAGR over FY17?19E, led by expanding distribution network, strong product portfolio and recovery in economic activity.
“The management initiatives to cut costs, reduce debt, improve working capital cycle, divest non-core assets and fill product gaps have yielded results in terms of meaningful market share gain and consistently strong financial performance. The company has clocked double digit margins in the last 10 quarters making it the most profitable CV player,” analysts at ICICI Securities said in result update.
At 10:01 am; the stock was trading 1.4% higher at Rs 94.85 on BSE as compared to 0.06% rise in the S&P BSE Sensex. A combined 17.25 million shares changed hands on the counter on BSE and NSE so far.