We have SOTP based TP to Rs 118 (9x EV/EBITDA 19E + 0.5x investment book). Maintain BUY. Ashok Leyland (AL) posted in-line revenue (-0.5% YoY to Rs 42.4bn) in 1Q, while margins (-410bps YoY, 7.2%) came much below estimates. EBITDA at Rs 3.1bn (-37% YoY) was hit by operating de-leverage (one-offs in employee costs and other expenses).