Ashok Leyland Ltd. share price target

Ashok Leyland is one of the leading commercial vehicle manufacturer in India with its headquarters in Chennai, with medium & heavy commercial vehicles (MHCV) as its core business. Ashok Leyland is the 2nd largest manufacturer of commercial vehicles in India and also the 4th largest manufacturer of buses in the world. With Strong manufacturing capabilities, growing market share and international presence, the company has a good potential of future growth. We remain positive on AL's future prospects and initiate...

Ashok Leyland 10 October 2018 Domestic M&HCV; volumes increased at ~13% CAGR (FY15-18) from the downcycle of FY13/14, despite mixed macro trends, led by the recovery in infra and agri activity, and the strict implementation of the overload ban. We expect domestic M&HCV; volumes CAGR of ~8% (under our base-case scenario) over FY18-21, driven by an economic recovery, proliferation of the hub & spoke model for the transport of goods, and increased demand for truck makers due to overload restrictions. Despite several headwinds (easing of the overloading ban in UP, an increase in rated load and a significant rise in diesel cost), momentum in CV demand remains healthy (growth of ~55% in FY19YTD, though off a low base 1QFY18 had a pre-buy impact), indicating strength in the underlying demand drivers. We expect a limited impact on new CV demand from higher rated load, as only select segments will benefit from it.

Upcoming elections in 2019 may push MHCV sales on the back of GOI expediting infra reforms Axle norms implementation may pull down truck sales to some extent in the ensuing months, but the intrinsic demand strength may well offset this pull down....

Axle Load Notification: Ministry of Road Transport and Highways through notification dated on 18th July, 2018 has increased the load carrying capacities of heavy vehicles (16T GVW+) including trucks by 20-25%.

Revenue decreased by 28.75% to Rs. 6250.13 Cr in Q1FY19 when compared to the previous quarter. Ashok Leyland Ltd Q1FY19 results Comment

Ashok Leyland's (AL) 1QFY19 EBITDA margin were 10.4% above our and consensus estimates of 10.0% and 9.7% respectively. EBITDA margin were higher on account of lower RM cost. Revenue were below our and consensus estimates due to lower net...

Maintain Buy with TP Rs 143 (18x FY20E EPS) vs Rs 166 earlier Ashok Leyland (AL) delivered in line rev and operating performance. Revenue came at Rs. 62.5bn (+47.5% YoY) led by 47% growth in vol (42.1k units) on low base (BSIV and GST transitions). EBIDTA jumped 110% YoY to Rs 6.4bn, with margin at 10.4% (+317bps YoY).

ICICI Securities Ltd | Retail Equity Research Ashok Leyland's Q1FY19 results came in line with our estimates on the operational & profitability front. Revenues came in at | 6250...

Revenue in the quarter grew by 47% YoY on strong volume growth. We note that 1QFY18 witnessed significantly weak volumes on account of BSIV transition and GST implementation. EBITDA for the quarter increased by 112% YoY, supported by 48% volume growth and margin expansion. PAT for the quarter came in at...

Ashok Leyland (AL) is the second largest commercial vehicle (CV) manufacturer in India. It has a strong presence in the M&HCV; (Heavy Commercial Vehicle) segment with a market share of ~34.0% as on FY17. Q1FY19 revenue grew by robust 47%YoY largely led by 60%YoY volume growth from M&HCV; & 33%YoY from LCV segment....