Ashok Leyland fell 5.06% to Rs 92.85 at 14:19 IST on BSE after a domestic brokerage reportedly downgraded the stock to 'sell', citing signs of demand moderation in commercial vehicles segment.
Meanwhile, the BSE Sensex was down 97.95 points, or 0.36%, to 27,180.81.
On BSE, so far 21.54 lakh shares were traded in the counter, compared with average daily volume of 13.09 lakh shares in the past one quarter. The stock hit a high of Rs 96.40 and a low of Rs 92.50 so far during the day. The stock hit a record high of Rs 112.80 on 13 April 2016. The stock hit a 52-week low of Rs 70.50 on 6 July 2015. The stock had underperformed the market over the past 30 days till 4 July 2016, falling 8.04% compared with 1.62% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 10.11% as against Sensex's 9.63% rise.
The large-cap company has an equity capital of Rs 284.59 crore. Face value per share is Re 1.
According to reports, the brokerage has reduced its target price on Ashok Leyland stock to Rs 85 from Rs 110 earlier. The brokerage has reportedly said in a research note that freight demand in the economy is weak while replacement demand for medium & heavy commercial vehicles is also moderating. Slowdown in the below 25 ton segment is even more steep while truck freight rates are not increasing, the brokerage has said according to media reports.
Ashok Leyland reported 7% rise in total vehicle sales to 11,108 units in June 2016 over June 2015. Total M&HCV sales rose 8% to 8,685 units in June 2016 over June 2015. Total light commercial vehicles (LCV) sales were almost flat at 2,423 units in June 2016, compared with 2,413 units in June 2015. The company announced the monthly sales volume data during trading hours on 1 July 2016.
Ashok Leyland's net profit dropped 66.5% to Rs 77.02 crore on 32.9% rise in net sales to Rs 5893.49 crore in Q4 March 2016 over Q4 March 2015.
Ashok Leyland is the second largest manufacturer of commercial vehicles in terms of sales in India.
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