Ashok Leyland actually posted a good set of numbers for Q2FY19 but because it did not match up to the higher expectations of analysts/brokerage houses, it has been beaten down and is currently the top loser on the BSE. The stock price slipped 9% to Rs.108.50, not too far from its 52-week low of Rs.103.20.

The company posted a good 37% (YoY) jump in net profit at Rs.460 crore on a 25% rise in revenue at Rs.7608 crore.

Operating profit rose 32% at Rs.806 crore while margins showed a marginal jump from 10.1% to 10.6%. The analysts are punishing the company on the bourses for turning out a poor margin expansion, higher raw material cost not commensurate with much lower hike in selling price.

Maybe the market is also worried about the resignation of the CEO, Mr.Vinod K. Dasari – he was the one who helped the company turnaround. But in any company, management changes do happen and this will be just a blip.