Ashok Leyland Ltd., incorporated in the year 1948, is a Large Cap company (having a market cap of Rs 41479.00 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
The brokerage expects AL’s volume to record a healthy double-digit growth in FY22E and FY23E. It expects a stable market share for AL, while the brokerage estimate its EBIDTA margin of 10.8% in FY22E and 12% in FY23E (close to the previous peak, aided by a turnaround in LCV business). As the worst phase of the current down-cycle for M&HCV segment and AL seems to be over now, it believes an up-cycle in FY22 and FY23 would bring back high earnings growth and valuation expansion, which would lead to a sharp upside from the current level. It has a BUY rating on AL, with Target Price of Rs170.
Promoter/FII Holdings
Promoters held 51.54 per cent stake in the company as of 30-Sep-2021, while FIIs owned 16.33 per cent, DIIs 19.54 per cent.
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