Ashok Leyland new tie-up with Nissan Motor Company

Ashok Leyland was flat at Rs 37.40 at 12:37 IST on BSE after the company said it has signed agreement with Nissan Motor Company, Japan for setting up of three joint venture firms for light commercial vehicles business in India.

The stock came off session's low of Rs 35.05 after the announcement.

The stock hit a high of Rs 38.15 so far during the day. The stock had a 52-week high of Rs 57.90 on 8 January 2008 and the stock hit a 52-week low of Rs 25.80 on 1 January 2008.

The company’s current equity is Rs 113.33 crore. Face value per share is Rs 1.

The current price of Rs 37.40 discounts its Q4 March 2008 annualised EPS of Rs 5.43, by a PE multiple of 6.89.

The aggregate investment in all three companies will be around Rs 2300 crore. The plant is expected to start production from 2010/11.

Ashok Leyland’s net profit rose 5.3% to Rs 180.57 crore on 11.8% increase in net sales to Rs 2562.01 crore in Q4 March 2008 over Q4 March 2007.

Ashok Leyland manufactures commercial vehicles and spare parts. The company also manufactures special vehicles and engines for industrial, genset, marine requirements and automobile spare parts. The company operates only in India.