Investors have always bet on shares of Indian automakers to lead markets higher and this time around too, things haven’t changed, with the exception of one commercial vehicle manufacturer.
In today’s chart of the day, we take a look at Ashok Leyland’s performance over the last six months.
The flagship company of the Hinduja Group has given a negative 5 percent return since March of this year, against a 38.7 percent jump in the S&P BSE Auto index.
During the same period, Tata Motors, thanks to robust sales from its Jaguar Land Rover division, has risen more than 82 percent.
In fact, Ashok Leyland is the only stock that has given a negative return among the 13 members that form the sectoral gauge.
The truckmaker’s sub-par performance can be attributed to a combination of muted month-on-month sales, which has been a concern for the CV segment as a whole, and outperformance of the stock in the previous year. The stock rose more than 60 percent last year.