Ashok Leyland shares rose more than 4% in early trade on September 1 after the company announced a massive order for 1400 school buses in the United Arab Emirates (UAE). This is the largest supply of school buses the company has ever had in the Gulf region.

The stock was trading at Rs 160.20 per share on the BSE at 11:16am, up 4.03 percent, while the benchmark Sensex was at 59,129.10, down 407.97 points or 0.69 percent.

The total fleet deal for Gulf Cooperation Council (GCC) buses is worth AED 276 million ($75.15 million). Swaidan Trading – Al Naboodah Group, one of Ashok Leyland’s UAE distribution partners, received the order.

Most of the supplies will be made to Emirates Transport and STS Group, a statement from the company said.

According to the Hinduja Group flagship, the 55-seater Falcon bus and 32-seater Oyster bus will be supplied from its manufacturing facility in Ras Al Khaimah, UAE, which is the only certified local bus manufacturing facility in the entire GCC region.

The Ras Al Khaimah plant is a joint venture between Ashok Leyland and the Ras Al Khaimah Investment Authority (RAKIA) in the United Arab Emirates, with a capacity of 4,000 buses per year.

Analysts are mostly optimistic about the stock. They believe there is a 30% chance of success.

According to BP Wealth, the most recent broker to initiate coverage on the stock, with the expected pick-up in the segment and Ashok Leyland being a market leader with a strong product portfolio and further launches planned in CNG/LNG buses, bus volumes are expected to rise rapidly.

On the scrip, the brokerage has set a target price of Rs 205.