Ashok Leyland Ltd., incorporated in the year 1948, is a Large Cap company (having a market cap of Rs 34463.09 Crore) operating in Auto sector.
Ashok Leyland Ltd. key Products/Revenue Segments include Commercial Vehicles, Spare Parts & Others, Sale of services, Engine & Gensets, Ferrous Castings, Scrap, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 4103.27 Crore, down -49.82 % from last quarter Total Income of Rs 8176.73 Crore and up 171.44 % from last year same quarter Total Income of Rs 1511.69 Crore. Company reported net profit after tax of Rs -250.78 Crore in latest quarter.
Investment Rationale
Ashok Leyland Ltd (ALL) is one of the leading player in India CV industry with a 32% market share in the MHCV segment. The company also has a strong presence in the fast growing LCV segment. Demand for MHCV was adversely impacted post peaking out due to multiple factors including changes in axel norms, increase in prices due to implementation of BS 6 norms followed by sharp drop in demand due the ongoing Covid-19 crisis. While demand for the LCV segment has been growing smartly post the pandemic, demand for the MHCV segment has also started to recover over the past few months before the 2nd lockdown. The brokerage believes that the company is ideally placed to capture the growth revival in the CV segment and will be the biggest beneficiary of the Government’s voluntary scrappage policy and hence rate the stock a BUY.
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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