Shares of Ashok Leyland Ltd. surged to a four-year high on a report of the commercial vehicle maker bagging a mega order from the UAE.
The stock rose almost 5%, the most in over four weeks, to Rs 161.6 apiece.
Ashok Leyland has received orders to supply 1,400 school buses to major fleets in the UAE, PTI has reported. The deal was won by the automaker’s distribution partners, Swaidan Trading-Al Naboodah Group, it said.
The company has not disclosed the financial terms of the deal. Majority of the supplies will go to Emirates Transport and STS Group, PTI reported citing a statement from the company.
The world’s fourth-largest busmaker, according to the report, will also supply 55-seater Falcon bus and 32-seater Oyster bus from Ashok Leyland’s $50-million manufacturing facility in Ras Al Khaimah—the only certified local bus-making facility in the entire Gulf Cooperation Council region.
The stock’s trading volume was nearly five times the 30-day average. Of the 47 analysts tracking the company, 39 maintain a ‘buy’, seven suggest a ‘hold’ and one recommends a ‘sell’, according to Bloomberg data. The 12-month consensus price target implies a 7.7% upside.