Ashok Leyland shares jump 3%; stock up 5 of past 6 sessions

Ashok Leyland shares ended 3 per cent higher on Tuesday, marking their fifth gain in the last six sessions. The uptick came amid the company announcement of plans to set up 50 new touchpoints in Central India, expanding its service network in the region from the existing over 90 workshops.

Ashok Leyland shares rose 3.41 per cent on Tuesday to close at Rs 144.10 on the BSE, against its previous close of Rs 139.35, valuing the company at Rs 84,636 crore. The stock, which hit a fresh 52-week high of Rs 144.50 during the session, is now at 51 per cent above its 52-week low of Rs 95.20. It has also gained nearly 7 per cent in the last six sessions.

The commercial vehicle maker said it would add “50 new touchpoints in addition to the existing 90 workshops in the region”, aiming to bring down service availability from every 50 km to just 25 km over the next year, backed by over 600 trained technicians across Madhya Pradesh and neighbouring markets.

“Madhya Pradesh and the Central India region have always been a prime market for us… We remain steadfast to delivering top-quality LCV products and an expanded network to cater to the specific requirements of this region,” said Viplav Shah, Head – LCV Business, Ashok Leyland.

The scrip trades at a PE ratio of 25.10 and a PB of 8.38, with a one-year beta of 1.4, indicating very high market volatility.

On the technical front, the stock’s RSI stood at 66.1, suggesting mid-range momentum, while the MFI at 70 indicates the stock is overbought. The scrip is trading above its 50-day and 200-day simple moving average (SMA) of Rs 127.6 and Rs 115.6, respectively.