Ashok Leyland zooms on UAE plan

DALAL STREET SPIKES

Truck and bus maker Ashok Leyland continued to outperform the Sensex as it gained 3 per cent to close at Rs 47.85. About 22 lakh shares were traded on the BSE.

The stock has shot up sharply since late July. The bullishness was on the back of its announcement of investments worth $5 million in a bus assembly unit in the United Arab Emirates (UAE) having a capacity of 1,000 buses per annum.

The Hinduja group flagship recently launched 'Comet-1611', a factory-built cab customised to specific industry requirements in Hyderabad.

The company is targeting the growing retail, oil and gas supply and consumer products sectors with this vehicle. The company has also chalked out plans to expand its existing facility with an investment of about Rs 500 crore.

The company along with other four automobile majors namely - Bajaj Auto, Tata Motors, Mahindra and Eicher Motors -planning to develop hydrogen-blended compressed natural gas (HCNG)-run vehicles.