India's second-largest truck and bus maker Ashok Leyland came out with spectacular Q2FY11 results. The numbers were much higher than expectations. It reported a net profit of Rs.167.1 crore, a growth of 88.6% yoy and net sales rose by 72% to Rs 2,714 crore.
Moreover, compared to last year’s first half, this year’s first half has been remarkable with more than 100% increase in volumes. Growth, on the export side, particularly in the Sri Lankan and Bangladesh market has been remarkable. Overall, the company sold 46,000 vehicles in first half and the full year volumes are expected to be around 92,000-95,000 vehicles. Considering its healthy top-line and bottom-line growth and the upcoming demand in auto sector, the company will be a good bet for investors. We recommend holding onto the stock and accumulating on any further declines.
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