Sharekhan has given Buy recommendation for Ashok Leyland with a target price of Rs. 165 in its research report issued on May 20, 2022

Sharekhan’s research report on Ashok Leyland

Strong performance in Q4FY22 with revenue, EBITDA and PAT were ahead of expectations by 5.2%, 28.9% and 56.7% respectively. ALL is expected to benefit from its aggressive strategy of growing its market share through increased penetration across all regions, new product launches and well placed to benefit from e-mobility movement. The stock is trading below its average historical multiples at P/E of 18x and EV/EBITDA of 10.1x its FY2024E estimates.

Outlook

We retain our Buy rating on Ashok Leyland Limited (ALL) with a revised PT of Rs 165, owing to growth recovery in the CV industry, led by improvement in economic and infrastructure activities.

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