Ashok Leyland Ltd. share price target

Key highlights: Strong quarter, as better mix helped prop up margins. While we maintain our BUY rating, nearterm outlook remains sluggish as replacement demand cools off. Channelcheckssuggestneartermvolumegrowthwillbesubdued,asreplacementdemand coolsoff.However,thisdemandislikelytopickuppacefromQ4FY17,asprebuyingkicksin due to regulatory changes. We reduce our estimates by 5%/7% for FY17/18 on nearterm...

ICICI Securities Ltd | Retail Equity Research Ashok Leyland's Q1FY17 results came in above our estimates on all parameters. Revenues came in at | 4,259 crore (up 9.7% YoY) above our estimate of | 4,116 crore. Revenue growth was driven by 11% YoY growth in total volumes, which was at 31165 units. MHCV volumes grew 12% YoY while LCV volumes grew 7% YoY Reported EBITDA was at | 476 crore vs. our estimate of | 433 crore. EBITDA margins came in at 11.2% (up 106 bps YoY) vs. our estimate...

Ashok Leyland's (ALL) Q1FY17 operational performance was way above our as well as street's estimates with strong margin and bottom line performance by company. Company's Revenue/EBIDTA/Adj PAT grew by 9.7%/21.3%/63.5% YoY (down 28.5%/36.8%/43.9% QoQ) to Rs 42.6bn/4.8bn/2.56bn as against our estimate of Rs 42.6bn/4.1bn/1.84bn in Q1FY17. Operating performance was benefitted by healthy volumes, product mix, lower commodity price and price hike, while lower non vehicular sales restricted margin expansion to certain extent. Its EBIDTA margin expanded 108 bps YoY (down 146 bps QoQ) to 11.2%, as against our estimate of 9.7%. ALL's RM/Sales grew by 38 bps YoY and Employee cost/Sales decreased 6 bps YoY. Its other expenses declined by 2.1% YoY. Company booked an exceptional profit of Rs 497mn on account of MTM gain on forward contacts due to implementation of new accounting standards.

Background: Ashok Leyland (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 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...

With adoption of Indian Accounting Standards (Ind AS), Ashok Leyland's (ALL) 1QFY17 result came ahead of our estimate on the back of (1) higher-than-expected revenue growth at 9.7% v/s our estimate of 8.3%, as ASPs were 2.4% above estimates, which translated into 110bps yoy expansion in EBITDA margin to 11.2%; and (2) exchange...

Ashok Leyland (ALL)'s Q1 FY17 results reported strong sales at 9.7% yoy on healthy volume numbers which grew 14% yoy on rapid recovery in the MHCV cycle and some pickup in the infrastructure development in the country. Margins came in higher yoy at 11.2% as RM remained more or less stable and other expenses reduced on account of seasonally low marketing activity and steady discounting. Staff cost came in high at 8.4% qoq on wage hike taken, but remained flattish yoy as wage hike is always taken in Q1. Other income came higher by 71% yoy on FMP maturity and accrual of interest income on surplus tax balance. Higher tax rate at...

Background: Ashok Leyland (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. Its volume composition: Trucks - 59%, Buses - 20%, LCVs - 8% and Exports - 13%. 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 Automotive Infotronics and Albonair GmbH for...

ICICI Securities Ltd | Retail Equity Research Ashok Leyland's Q4FY16 results were largely in line with our estimates operationally. Revenues came in at | 5,955 crore (up 32%...

Key highlights: Strong revenue momentum continues, with replacement demand still boostingindustryvolumesandmarketsharegainsaidingoutperformance.Wemaintainour BUY rating as we see growth triggers in place with strong replacement demand, start of...

Supported by robust 28.8% yoy volume growth, Ashok Leyland (ALL) has reported operating performance in line with our expectation. Its reported PAT plunged 66.5% yoy owing to net exceptional item pertaining to impairment of investments. However,...