Ashok Leyland to launch 18 truck variants in CY2014 - Angel Broking

Ashok Leyland plans to launch 18 truck models under its new brand Captain in CY2014. The company has invested about Rs. 600-Rs. 700cr in the development of the new platform through which it plans to introduce various range of medium and heavy commercial vehicles going ahead. The Captain series will be rolled out from the company's Pantnagar facility and will be available in the 16T to 49T category in various types such as tippers, tractors and haulage vehicles. Ashok Leyland also intends to export the vehicles to Middle East, Latin America, Africa and South East Asian countries in the CKD form. While, we believe that new launches enable the company to register strong growth and are the primary growth drivers amid increasing competition in the sector; given the current slowdown in demand we do not see a significant impact of the new launches on company's performance. We maintain our Neutral rating on the stock.

Source : Equity Bulls

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