Ashok Leyland Ltd. share price target

We value the stock at Rs 166 (18x FY20E EPS) and recommend a BUY. Driven by higher vols (+23% YoY) and ASP (+8% YoY) Ashok Leyland (AL) printed impressive revenues in 4QFY18 at Rs 87.8bn (+32% YoY). EBIDTA rose 42% YoY to Rs 10.32bn, with margin at 11.8% (+80bps YoY) driven by operating leverage. APAT grew 40% at Rs 6.7bn.

Ashok Leyland (ALL) reported 32.6% yoy and 23.3% qoq growth in the topline. Volume growth was at 23% yoy and the realizations were up by 7.8% yoy. The company maintained its market share despite cutting discounts and increasing prices. Margins came in at 11.8%, 80 bps higher yoy, and 70 bps higher qoq. A better product mix and operating leverage led to the margin outperformance. RM prices went up during the same time along with employee costs. Below the operating level, other income grew well both yoy and qoq, while depreciation expenses grew 5% yoy. Due to reduction in tax sops in Pantnagar, the tax rate came in at 28.4%. Net profits surged by 40.2% yoy, while...

Subdued Operating Performance; Positive Revenue Traction to Continue Despite strong volume growth, Ashok Leyland (ALL) has delivered a subdued operating performance in 4QFY18 led by inferior product-mix and sharp rise in commodity prices. While EBIDTA margin expanded by just 80bps YoY (+73bps) QoQ to 11.8%, EBIDTA grew by 42% YoY (+32% QoQ) to Rs10.3bn. Its revenue grew by a strong 32% YoY (+23% QoQ) to Rs87.7bn on the back of 23% YoY (+28% QoQ) growth in volume to 58,735 units. Notably, higher LCV contribution resulted into adverse RM/Sales ratio (+21bps YoY and +89bps QoQ to 71.9%) that impacted margins, while Employee Cost/Sales ratio fell by 77bps YoY and 138bps QoQ. Other expenses...

Revenue grew by 22.84% to Rs. 8772.49 Cr in Q4FY18 when compared to the previous quarter. Ashok Leyland Ltd Q4FY18 results Comment

ICICI Securities Ltd | Retail Equity Research We recently attended Global Conference 2018' of Ashok Leyland (ALL). We are upbeat about the future prospects of the company. The positive takeaways from the conference are-: 1) promising product launches across categories in both M&HCV; & LCV segments, 2) growth in M&HCV; to sustain for the next two years on the back of infrastructure growth & pre-buying ahead of BS VI emission norms, 3) expansion of LCV portfolio to address white spaces but only segments that meet the internal RoCE target, 4) the...

We attended the management meet of Ashok Leyland (AL) along with AL expo which showcased their products. Following are the highlights of the same. Increased focus on LCV business with capacity expansion: Company target to increase its sales from ~43k to 100k in coming years. It is also likely to come out with new products/variants in every quarter between 2tn to 7.5tn and increase its market share from the current level of ~9%. Going ahead focus of the company to fill the...

We attended Ashok Leyland's (AL) Annual Global Conference 2018. Themed 'Conquer new frontiers - More battles to win,' the conference provided useful insights into the company???s operations and opportunities. Management re-iterated its focus on gaining further ground in LCVs, exports, defence and digital initiatives (after-sales and service infrastructure). Encouragingly, AL's product launch pipeline remains strong, with five products planned to be rolled out in the M&HCV segment and two products each in the LCV and bus segments. The company also targets to launch a new variant of Dost in the LCV segment. Furthermore, AL is sanguine about the FY19 demand outlook, considering the pick-up in mining and infrastructure activities. Pre-buy demand ahead of the BS-6 emission standards implementation is another positive

M& HCV industry volumes grew by 12% in FY18, driven largely by strict implementation of rated load capacity in markets of UP, Rajasthan and Haryana. While truck volumes grew 20%, bus volumes declined 25% in FY18. Truck segment tonnage grew over 30% due to mix improvement towards higher tonnage vehicle. MAV/Tractor trailer grew over 35% whereas haulage segment was down 21%. Tippers grew 6%, whereas ICVs grew 28%. This is reflected in strong growth in the North, East and Central markets, but muted growth in the South and West.

Ashok Leyland Ltd (ALL) is the flagship company of the Hinduja Group, and one of the largest commercial vehicle manufacturers in India. ALL is engaged in the manufacturing of commercial vehicles and related components. ALL's products include buses, trucks, engines, defense and special vehicles. Ashok Leyland offers a range of products fro..

Ashok Leyland Ltd. (ASHLEY) reported ~57.5% YoY jump in net sales in 3QFY18 to INR 71132 mn due to 41.2%/44.6% growth in M&HCV; and SCV volume. EBITDA has grown by 101.9% to INR 7882 mn, while EBITDAM improved by 244 bps despite increase in RM cost. PAT for the quarter stood at INR 4497 mn (Up 178% YoY). We expect ASHLEY to register M&HCV; Volume/Revenue/PAT growth of 10.6%/ 18%/19.8%. At CMP of INR 127, the stock is trading at EV/EBITDA of 11.5x. We have valued standalone business at 12x FY19 EBITDA and...