ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Web Stories
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • IPL 2023
    • Karnataka Elections 2023
    • Viral
    • Education
    • Jobs
Read in App
Business News » Companies News

Ashok Leyland Share Price - 38% upside: Buy, says Sharekhan, reveals reason why

Ashok Leyland is a pure play on upturn in the commercial vehicle (CV) cycle. Sharekhan believes the CV industry is poised for upturn in the market because of faster than expected recovery in economic activities. There has been a continuous uptick in economic activities after the government announced unlock measures. There has been substantial improvement in infrastructure, road construction, and mining activities.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Ashok Leyland Share Price - 38% upside: Buy, says Sharekhan, reveals reason why
The Ashok Leyland stock is attractively priced at EV/EBITDA of 7.9x and P/E of 14.9x its FY2023E estimates: Reuters

Ashok Leyland Share Price: Sharekhan maintains buy recommendation on Ashok Leyland with a further upside of 38%. Sharekhan has arrived at a price target of Rs 131 on Ashok Leyland by assigning a target multiple of EV/EBITDA of 11.7x,  long term average EV/EBITDA multiple on its EBITDA FY2023E. The Ashok Leyland stock is attractively priced at EV/EBITDA of 7.9x and P/E of 14.9x its FY2023E estimates.

Ashok Leyland is a pure play on upturn in the commercial vehicle (CV) cycle. Sharekhan believes the CV industry is poised for upturn in the market because of faster than expected recovery in economic activities. There has been a continuous uptick in economic activities after the government announced unlock measures. There has been substantial improvement in infrastructure, road construction, and mining activities.

Sector Outlook - CV sales improving; Expect strong recovery in FY2022:

With the opening up of the economy under the government's unlock measures, business activities are picking up, resulting in improved CV volumes. The decline in CV sales has narrowed to 20% yoy in Q2FY2021 as compared to 85% yoy drop in Q1FY2021. Sharekhan expects strong double digit growth for the CV segment from FY2022. The expected normalisation of economic activities is likely to drive demand. Moreover, strong pent-up demand (CV volumes have been following the downtrend trend since the past eight quarters) is expected to drive CV volumes from FY2022.

Ashok Leyland outlook - Beneficiary of recovery in the CV industry:

Sharekhan believes the CV industry is poised for upturn in the market due to faster than expected recovery in economic activities. There has been a continuous uptick in economic activities after the government announced unlock measures. There has been substantial improvement in infrastructure, road construction, and mining activities. Channel check suggests fleet operators are running over 60% capacity and expect it to improve sequentially. New demand for trucks typically happens when fleet operators start operating above 80% utilization. Ashok Leyland will also benefit from replacement demand, which is likely to arise due to lower ownership costs for BS-VI vehicles as compared to BS-IV vehicles. Bus demand is also expected to rise from Q4FY2021, as the public resumes to normal life.

See Zee Business Live TV Streaming Below:

Positive outlook on Ashok Leyland going forward:

Ashok Leyland expects industry demand to improve as the economy opens up and business activities gain momentum. The company is witnessing divergent trends for various segments in the CV industry. Tippers, multi-axle vehicles, and light and intermediate commercial vehicles are performing better, while the bus segment is yet to pick up. To ensure social distancing (people are avoiding public transport) and with schools not yet reopening, the bus segment’s demand is lagging behind. ALL is expected to benefit from new launches in intermediate commercial vehicles (ICV). The Bada Dost in LCV has been well received by the market.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Ashok LeylandAshok Leyland sharesAshok Leyland sales
Reported By: ZeeBiz WebTeam
Written By: Rahul Kamdar
Edited By: Harish Dugh
Updated: Fri, Dec 04, 2020
09:48 am
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Should you buy, sell or hold Ashok Leyland shares after auto major's strong Q4 results? Should you buy, sell or hold Ashok Leyland shares after auto major's strong Q4 results?
Ashok Leyland Q4 results: Net profit falls 17% but meets analysts' estimates; board recommends Rs 2.6/share dividend Ashok Leyland Q4 results: Net profit falls 17% but meets analysts' estimates; board recommends Rs 2.6/share dividend
Ashok Leyland Q4 result preview: PAT likely to decline more than 25%, revenue seen growing 34.5% Ashok Leyland Q4 result preview: PAT likely to decline more than 25%, revenue seen growing 34.5%
Ashok Leyland April total sales rise 10% to 12,974 units Ashok Leyland April total sales rise 10% to 12,974 units
Ashok Leyland bags order of 1,560 trucks from VRL Logistics Ashok Leyland bags order of 1,560 trucks from VRL Logistics

LATEST NEWS

Apple iPhone 14 available at 'lowest price ever': Flipkart offering huge discount - Check details

Rajasthan free electricity scheme: CM Ashok Gehlot announces zero bill for users consuming up to 100 units every month — check details

Campus Activewear shares extend fall to 15% in two days; good time buy this footwear stock?

Vedanta Resources pays USD 400 mn debt, borrowings down to USD 6.4 bn

Eminent scholar-writer Vellayani Arjunan dies at 90

Sebi proposes mandating additional disclosure for high-risk foreign portfolio investors

World No Tobacco Day 2023: Sudarsan Pattnaik creates sand art

Yellow alert in Delhi as rain, and thunderstorms in NCR in next two hours

FII inflow: May could be best month for Dalal Street since February 2021

Manappuram Finance launches digital lending app Ma-Money

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV