Ashok Leyland Ltd., incorporated in the year 1948, is a Large Cap company (having a market cap of Rs 35666.66 Crore) operating in Auto sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 8176.73 Crore, up 36.27 % from last quarter Total Income of Rs 6000.28 Crore and up 59.48 % from last year same quarter Total Income of Rs 5127.11 Crore. Company reported net profit after tax of Rs 374.66 Crore in latest quarter.
Investment Rationale
AL’s EV strategy is in line with the technological revolution seen globally. We expect electrification in CVs to play out earlier in intra-city Buses and LCVs. While AL’s strategy is exciting and leverages on the strengths of both Optare (Switch Mobility) and AL, details are awaited for a more concrete plan and timeline for their EV roadmap. The brokerage expects demand recovery in CVs by the end of 2QFY22E and the same to gather momentum in 2HFY22E, resulting in a recovery in M&HCV volumes to FY20 levels in FY22E. Volumes in FY23E would still be lower than the peak of FY19, with the possible crossing of peak volumes of FY19 in FY24E. AL would benefit from an expansion of its revenue/profit pool by ramping-up in LCVs, Exports, Spares, and Defense.
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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