Shares of Ashok Leyland increased after the company received a major order from the UAE 2022

Shares of Ashok Leyland increased after the company received a major order from the UAE 2022

UAE: Ashok Leyland, the Hinduja Group’s flagship brand, stated on Wednesday that it had received orders for 1,400 school buses from major fleets in the UAE, the company’s largest-ever delivery of city buses in this country.

Swaidan Trading: Al Naboodah Group, a Chennai-based partner in Ashok Leyland’s UAE distribution, has won the order for the entire fleet of buses built in the GCC. According to a corporate statement, Uae Transportation and STS Group will get most of the supplies. The order’s value wasn’t made public, though.

The 55-seater Kestrel bus and the 32-seater Oyster bus will be supplied from Ashok Leyland’s US$50 million state-of-the-art manufacturing plant in Ras Al Khaimah, United Arab Emirates, the only certified local bus manufacturing facilities in the entire Gulf Cooperation Council (GCC) region, as per to the fourth-largest bus manufacturer in the world.

This is a momentous time for Ashok Leyland in the UAE, according to Executive Chairman Dheeraj Hinduja. He said that this demonstrates the dependability, toughness, and sturdiness of our buses and confirms our customers’ belief that they are the best for transporting schoolchildren.

These goods are produced in an arranging facilities in the UAE. More than 55% of the parts used in the assembly process come from the UAE, where our engineers create them and where the final product is produced.

Since it began operating in 2008, Ashok Leyland has produced 25,500 buses at its plant, selling buses to African countries. Our brand-new, UK-based electric vehicle startup, Switch Mobility, will assist us in realizing our purpose of zero-carbon transportation.

We expect to release our electric cars in these areas shortly because there is tremendous development potential from Switch’s expansion in the UAE and the GCC, continued Hinduja.

According to Amandeep Singh, the Head of International Operations, Ashok Leyland is one of the Middle East’s expanding brands, with a burgeoning market presence in the United Arab Emirates.

Thanks to our cheap total ownership cost and amazing post-sale help, we got these orders. We are thrilled by the expansion of Economic growth of the country and the opportunities it provides.

Our aspirations to expand our providing in light commercial vehicles are ambitious. Singh promised that you would hear from us quickly. More than 7000 businesses use Ashok Leyland equipment in the GCC, which transports 1.8  million people daily.

On September 1, early trading saw a more than 4% increase in Ashok Leyland shares after the business announced it had received a massive order for 1400 city buses in the United Arab Emirates (UAE). The firm has now supplied the most school buses to a country in the gulf.

At the time of 11:16 am, the benchmark Dow was at 59,129.10, lower 407.97 pts or 0.69 percent, and the stock was trading at Rs 160.20 per share on the Exchange, up 4.03 percent.

The Hinduja Group’s flagship company, Ashok Leyland, is the fourth-largest bus manufacturer in the world, the second-largest producer of commercial automobiles in India, and the nineteenth-largest producer of trucks. Ashok Leyland, which has its headquarters in Chennai, has a diverse portfolio in the automotive industry.

It has nine manufacturing facilities, including seven in India, one in Leeds, the United Kingdom, one in Ras Al Khaimah, United Arab Emirates, and one in a membership with the All teams Collective for the production of high-press die-casting aluminium sheet elements for the automobiles and telecommunications sectors. Recently, Ashok Leyland was named India’s 34th best brand.

One of the most vertically integrated manufacturing companies on this side of the planet, Ashok Leyland has a market cap of US $ 4.5 billion and a presence in 50 countries. Trucks from Ashok Leyland have a product between 1T GVW and 55T GTW (Total Trailer Weight).

The overall fleet deal for the buses made in the Gulf Cooperation Organization (GCC) is valued at AED 268 billion ($75.15 million). The order was placed through Swaidan Trade – Al Naboodah Group, one of Ashok Leyland’s UAE distribution members.

According to a corporate statement, Emirates Transportation and STS Group will get the maximum of the supplies. The 55-seater Falcon bus and the 32-seater Oyster bus will be provided by the Hinduja Group’s flagship company’s production facilities in Ras Al Khaimah, United Arab Emirates, the only locally certified bus assembly plant in the entire GCC area.

A joint partnership by Ashok Leyland and the Ras Al Khaimah Development Authority (RAKIA) in the United Arab Emirates, the Ras Al Khaimah factory has a capacity limit of 4,000 buses per year.

Most analysts have the suited opinions of the stock. They think of the possible gains of up to 30%. Ashok Leyland is a leading company with a solid product portfolio and additional releases scheduled in CNG/LNG buses. Therefore, their bus numbers are expected to increase quickly, according to BP Wealth, the most recent broker to start coverage on the stock. The brokerage has placed the scrip’s target price at Rs 205.

The CV industry is on a proper development trajectory, according to KR Choksey, which has a goal price of Rs 168 on the stock. This trajectory is assisted by a low base, increased economic activity, higher fleet using rates, and demand from the agriculture and e-commerce sectors.

“AL (Ashok Leyland) is exceeding its market share in a cutthroat sector despite having to raise prices. Launches of new products are gaining popularity. We expect AL’s profitability to increase because the commodity costs decline, helped by improved gross margins, higher volumes, and operating leverage,” the statement continued.

Edited by Prakriti Arora