Ashok Leyland Ltd. share price target

Revenue fell by 35.96% to Rs. 4237.78 Cr in Q1FY18 when compared to the previous quarter. Revenue fell by 35.96% to Rs. 4237.78 Cr in Q1FY18 when compared to the previous quarter.

Background: Ashok Leyland (AL) (established 1948) is one of the leading commercial vehicle (CV) manufacturers in India. Part of the Hinduja group, the company operates out of seven manufacturing plants located in South India and one in Pant Nagar, Uttarakhand. The company's product range comprises of heavy/medium trucks and buses. The company has presence in 37 countries. Its volume composition: Ashok Leyland has more than 1,462 networks for sales as of FY16. ALL has many JVs: Nissan for LCVs, John-Deere for Construction Equipment, Irizar TVS for coach building, Alteams for High Pressure Aluminium die-castings, Continental for...

Background: Ashok Leyland (AL) (established 1948) is one of the leading commercial vehicle (CV) manufacturers in India. Part of the Hinduja group, the company operates out of seven manufacturing plants located in South India and one in Pant Nagar, Uttarakhand. The company's product range comprises of heavy/medium trucks and buses. The company has presence in 37 countries. Its volume composition: Ashok Leyland has more than 1,462 networks for sales as of FY16. ALL has many JVs: Nissan for LCVs, John-Deere for Construction Equipment, Irizar TVS for coach building, Alteams for High Pressure Aluminium die-castings, Continental for...

Ashok Leyland's Q4FY17 results were above our estimates on all parameters. Revenues came in at | 6618 crore, up 11% YoY above our estimate of | 6464 crore. Total volumes increased 8% YoY to 47621 units, with MHCV volumes up 9.7% YoY to 38643 units, while LCV volumes grew 2.6% YoY to 8978 units. The beat on revenues may be on account of higher than estimated ASPs, which grew 3% against our estimated decline of 1% Reported EBITDA was at | 730 crore, down 9.4% YoY, vs. our...

Revenue increased by 46.53% to Rs. 6617.89 Cr in Q4FY17 when compared to the previous quarter.

the back of cash crunch led by demonetization and high base. However, towards the end of Q4, sales growth intensified a bit as BS IV implementation was initiated. The management has already taken a price hike of 4% in Q4 and further 5-10% in April to cater to the growing RM...

We remain positive on AL given the strong FCF cycle which makes it debt free next year. After a volatile FY17, we believe the earnings downgrade cycle is nearing an end. Besides the reducing cyclicality, rerating triggers are return ratios reverting to a healthy ~30%, and a FCF yield of ~6%.

ICICI Securities Ltd | Retail Equity Research We recently attended Global Conference 2017' & Vehicle Expo' of Ashok Leyland (ALL). The following are key takeaways: 1) Thrust on technology developed intelligent exhaust gas recirculation (iEGR) vs. selective catalytic reduction (SCR) used by industry, 2) aims of being market leader in M&HCV; & defence space and No. 2 position in the LCV space, 3) trying to diversify its business, by expanding share of business segments like LCV, exports, aftermarket & defence....

AL put increased impetus towards LCV/exports/defense business. While in LCV it expects to debottleneck its capacity and plans to increase sales to ~100k from 30k current volumes, exports it is setting up two new assembly plants in Africa. Its target is to sell 2:1 in domestic to export market. Further in defense it aims to 10x its revenues in...

While demonetisation has negatively impacted the automobile industry, however we are expecting faster recovery in the volumes. While we expect this, the quantum of recovery cannot be assessed at this time. We forecast volume growth of 8% and 9% in FY18E and FY19E. Company has taken a 4% price hike in January hence we believe that margins ..