Lanka Ashok Leyland PLC

wgsaman · 1 Lanka Ashok Leyland PLC Wed Mar 21, 2012 2:22 pm

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Is it good to buy @ 2000 price level

Monster · 2 Re: Lanka Ashok Leyland PLC Wed Mar 21, 2012 4:00 pm

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I think you can collect only odd shares at this price. ASHO is a highly illiquid share. If you can collect at this level, I don't think it's a bad price.

raa · 3 Re: Lanka Ashok Leyland PLC Wed Mar 21, 2012 6:59 pm

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I wouldn't recommend.. It's fundamentally good but as a share it is very illiquid and unpredictable.

Make sure you have a price target and the ability to hold. The auto sector will be negatively affected by the USD depreciation as well as the fact that the government is looking to curtail imports to reduce the import bill. The Auto sector contributes to this... ASHO will not be that affected because they sell commercial vehicles and not consumer and luxury vehicles.

Fundamentally, the company has grown to be a billion rupee profit company. However, it will be negatively affected by the USD depreciation very badly in the short term as it has forward booked sales at a lower price. In the medium term and long term, they will have to reprice their products (they should have already) and mitigate the depreciation effect. This will lead to lower demand but should the dollar depreciate, they could stand to gain again depending on the volume of forward bookings and sales.

To be honest, I'd stay away from the sector unless I was sure about what I expect or what will happen in the next 3 - 12 months.

Monster · 4 Re: Lanka Ashok Leyland PLC Wed Mar 21, 2012 8:19 pm

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Thanks raa for your comment. Once this sector is my favorite. I gained more than 100% for my investment in ASHO and considerable capital gain form DIMO and UML too. However, I would like to refrain from investing in this sector for the reason you mentioned above, high interest rate and possible custom duty hike.

Dr.Bubble · 5 Re: Lanka Ashok Leyland PLC Wed Mar 21, 2012 8:45 pm

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raa wrote:I wouldn't recommend.. It's fundamentally good but as a share it is very illiquid and unpredictable.

Make sure you have a price target and the ability to hold. The auto sector will be negatively affected by the USD depreciation as well as the fact that the government is looking to curtail imports to reduce the import bill. The Auto sector contributes to this... ASHO will not be that affected because they sell commercial vehicles and not consumer and luxury vehicles.

Fundamentally, the company has grown to be a billion rupee profit company. However, it will be negatively affected by the USD depreciation very badly in the short term as it has forward booked sales at a lower price. In the medium term and long term, they will have to reprice their products (they should have already) and mitigate the depreciation effect. This will lead to lower demand but should the dollar depreciate, they could stand to gain again depending on the volume of forward bookings and sales.

To be honest, I'd stay away from the sector unless I was sure about what I expect or what will happen in the next 3 - 12 months.

for trading you are wrong
for long term you are right..

ASHO will not comedown if the odd lot shit wasnt there Evil or Very Mad

wgsaman · 6 Re: Lanka Ashok Leyland PLC Wed Mar 21, 2012 9:30 pm

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thanks for all

mark · 7 Re: Lanka Ashok Leyland PLC Fri Apr 06, 2012 6:51 pm

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i was wondering why people panic and selling ASHO Rolling Eyes

Sri Lanka has raised import duties on several categories of petrol-engined cars and three wheelers with steeper increases seen in larger hybrid vehicles, which had exceptionally low taxes earlier, Treasury Secretary P.B.

On petrol cars with standard engines with capacities below 1,000 cubic centimeters the effective total tax rate will go up from the current 95 percent to 120 percent.
Between 1000 to 1,600 cc the effective rate will go up from 119 to 128 percent. On three wheelers the effective rate will go up from 38 percent to 50 percent.

On hybrid cars with engines below 2,000 cubic centimeters total duties will go up from 38 percent close to 50 percent.

nature of business-
Lanka Ashok Leyland was incorporated in 1982 as a Public Limited Liability Company and started its operations in 1983 as a Joint venture between Lanka Leyland Ltd (a wholly owned company of Government of Sri Lanka) and Ashok Leyland Ltd India , to carry out the business of importation of Ashok Leyland commercial vehicles in knock down condition or fully built and carry out assembly operations, repair and service, body building on chassis and other developments to progressively develop ancillary industries locally.

(Buses,Tippers,Trucks)

http://www.lal.lk/

btw i remember a very bad day where i missed my ASHO orders Sad

and where SEYLAN BANK killed a good entrepenuer.. Mad

Monster · 8 Re: Lanka Ashok Leyland PLC Fri Apr 06, 2012 7:22 pm

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mark wrote:

btw i remember a very bad day where i missed my ASHO orders and where SEYLAN BANK killed a good entrepenuer..

What a lucky moment that was,

500 shares @ Rs 1600/- at 09:45:07 and 100 shares @ Rs 1524/- at 09:46:33 were purchased by me.

mark · 9 Re: Lanka Ashok Leyland PLC Mon Apr 09, 2012 8:27 pm

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Monster wrote:

mark wrote:

btw i remember a very bad day where i missed my ASHO orders and where SEYLAN BANK killed a good entrepenuer..

What a lucky moment that was,

500 shares @ Rs 1600/- at 09:45:07 and 100 shares @ Rs 1524/- at 09:46:33 were purchased by me.

ya i remember bro that day Very Happy

Rajaraam · 10 Re: Lanka Ashok Leyland PLC Mon Apr 09, 2012 10:15 pm

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ASHOK has not affected by recent duty increase since duty on buses and trucks remain unchanged. ASHOK imports only buses and trucks and they do not sell cars,jeeps,cabs or similar vehicles. Therefore they could continue peacefully. I guess ASHO price would appriciate shortly.