Shares of Ashok Leyland surged to record highs. Know why

Ashok Leyland Ltd., India's 2nd largest commercial vehicles maker, surged to a record high after the company handsomely beat the street's earning estimates.

Ashok Leyland said its first quarter net profit leapt 233 percent to 159.3 crore rupees compared with 47.9 crore rupees in the same quarter a year ago. Sales during April-June rose 55 percent to 3,841 crores versus 2,477.8 crore rupees. The company reported a 42 percent surge in unit volumes sold.

Ashok Leyland jumped 1.70 rupees, or 2 percent, to 88.45 rupees, a record high on the National Stock Exchange where 3.28 crore shares changed hands by 3:15 pm compared with a 5-day average of 78 lakh shares.

Ashok Leyland market capitalisation has surged 152 percent in one year to 24,670 crore rupees as investors rode the upturn in the commercial vehicles cycle.

Image credit: Indiatimes