Ashok Leyland rose 2.28% to Rs 15.70 at 10:01 IST on BSE after the company clarified that it is exploring various options to cut down its debt, including divestment of non-core assets.
The company made the announcement after market hours on Tuesday, 18 February 2014.
Meanwhile, the BSE Sensex was up 52.60 points, or 0.25%, to 20,686.81.
On BSE, so far 2.21 lakh shares were traded in the counter, compared with an average volume of 10.92 lakh shares in the past one quarter.
The stock hit a high of Rs 15.80 and a low of Rs 15.60 so far during the day. The stock hit a 52-week high of Rs 24.55 on 30 May 2013. The stock hit a 52-week low of Rs 11.82 on 29 August 2013.
The stock had underperformed the market over the past one month till 18 February 2014, sliding 8.90% compared with the Sensex's 2.04% fall. The scrip had, however, outperformed the market in past one quarter, falling 0.32% as against Sensex's 1.04% decline.
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The mid-cap company has an equity capital of Rs 266.07 crore. Face value per share is Re 1.
Ashok Leyland clarified that it is exploring various options to cut down its debt and has also gone on press about its intention to divest non-core assets in this regard. One of the identified non-core asset that is being looked at for sale will be a property situated in the Boat Club Area in Chennai.
The company made the clarification after a media report suggested that Ashok Leyland is planning to sell a prime property in Chennai.
Ashok Leyland said that as of now, it has not sold the property and the speculation would have risen based on some enquiries on the property.
Ashok Leyland's total sales declined 26% to 7,847 units in January 2014 over January 2013. Sales of medium & heavy commercial vehicles (M&HCV) declined 19% to 5,530 units in January 2014 over January 2013. Sales of light commercial vehicles (LCVs) dropped 37% to 2,317 units in January 2014 over January 2013.
Ashok Leyland reported net loss of Rs 167.21 crore in Q3 December 2013 compared with net profit of Rs 74.14 crore in Q3 December 2012. Net sales declined 19% to 1903.28 crore in Q3 December 2013 over Q3 December 2012.
Ashok Leyland, the flagship of the Hinduja Group, is the second largest maker of commercial vehicles in India after Tata Motors.
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