Why is Ashok Leyland stock under pressure? Blame the headwinds, but don’t ignore the positives.

Why is Ashok Leyland stock under pressure? Blame the headwinds, but don’t ignore the positives.


Why is Ashok Leyland stock under pressure? Blame the headwinds, but don’t ignore the positives.
Why is Ashok Leyland stock under pressure? Blame the headwinds, but don’t ignore the positives.

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Synopsis

With a decline in overall truck sales, Ashok Leyland’s stock price has sharply underperformed the Nifty Auto index, particularly since July 2023. Domestic institutions have significantly reduced their stake. Here’s why Ashok Leyland shares are not faring well and how some possible triggers hold the hopes for the commercial vehicle maker.

What is one key factor that drives truck manufacturing? Growing industrialisation – that’s what common knowledge will tell you. But the latest numbers defy this notion. India’s construction and manufacturing sectors are expected to grow 10.7% and 6.5%, respectively, as per government’s first advance estimates of GVA (gross value added) for FY24. Yet, truck industry sales have started showing year-on-year declines. With that, India’s only large

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Author: Shirley