Ashok Leyland on good roads in Africa

Ashok Leyland is in the limelight today morning. Hitting an intra day high at Rs.97.50, one expected the stock to surpass its 52-week high of Rs.99.50. But it came off from there is now at Rs.96 levels, up around 2.5%. So close yet so far…

The company yesterday evening, after market closure announced that it has received an order from Côte d'Ivoire, formerly known as Ivory Coast. This is a West African country with beach resorts, rainforests and a French-colonial legacy. The order is for 3600 vehicles and value is pegged at $200 million.

The contract is being funded by Exim Bank of India and is pending for final clearance from respective governments, said the company. The order includes supply of trucks and buses, which will be delivered in the next 12 months.  The company has said that this is the largest order, both for the company as well as the country with an Indian firm.