Time period given by analyst is one year when Ashok Leyland Ltd. price can reach defined target.
Ashok Leyland Ltd., incorporated in the year 1948, is a Large Cap company (having a market cap of Rs 36195.05 Crore) operating in Auto sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 6000.28 Crore, up 54.74 % from last quarter Total Income of Rs 3877.62 Crore and up 15.20 % from last year same quarter Total Income of Rs 5208.53 Crore. Company reported net profit after tax of Rs 38.41 Crore in latest quarter.
Investment Rationale
The brokerage believes H2FY22E could mark the start of a multi-year upcycle in M&HCV demand. However, it upgrades FY22E/FY23E estimates by ~11%/14% as the CV OEM’s margins positively surprises despite cost headwinds. It values the core business at 14x (unchanged) FY23E EV/EBITDA on the improving CV cycle outlook and add Rs6/share (earlier: Rs7/share) for investments to arrive at an SoTP-based target price of Rs143 (earlier: Rs132). It upgrades the stock to BUY from Hold.
Promoter/FII Holdings
Promoters held 51.5 per cent stake in the company as of March 31, 2021, while FIIs held 18.2 per cent, DIIs 16.6 per cent and public and others 13.7 per cent.
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