Ashok Leyland surprises with exceptional loss; stock down by 4 percent

Ashok Leyland, India's second largest truck maker came out with disappointing set of results and surprised the analysts' fraternity by declaring net profits at Rs. 77 crores, a sharp decline of 66.5 percent. 

The Truckmaker announced that the decline in profits was due to exceptional losses. Exceptional items include profits of Rs. 41.7 crore on sale of long term investments and diminution in value of investments amounting to a whopping Rs. 420.9 crores, as per the company reports. 

Company announced a dividend of Rs. 0.95 per share for the financial year ended  March 31,2016 subject to shareholder approval in the annual general meeting (AGM). The dividend if declared shall be paid from July 25 , 2016. 

At Rs. 97 per share the stock is trading above its 200 days simple moving average. The 200 day simple moving average for Ashok Leyland is Rs. 94 per share. Investors will need to carefully watch out for these levels. 
The stock has outperformed market and has delivered 41 percent returns over a 1 year period. The 52 w high for the stock is 112.90 and 52 w low is at 64.