Ashok Leyland on good roads

In the morning trades today, Ashok Leyland rose almost 13% to Rs.123.30, which is just 8% lower than its 52-week high of Rs.133.

The company posted excellent November month sales. Its total sales jumped up 51% (YoY) at 14,460 units, led by good growth in both Light Commercial Vehicles (LCV) and Medium Heavy Commercial Vehicle (MHCV) sales.

MHCV sales showed a 54% rise at 10,641 units while LCV sales rose 44% at 3819 units.

Trucks are the wheels of an economy as they indicate transport of goods which in turn indicates economic activity. Thus if truck sales rise, it is the first sign of growth happening.