Ashok Leyland share price: Sharekhan reiterates Buy rating with a revised price target of Rs 151
Ashok Leyland Q3 FY21 results were below expectations, mainly due to lower than-expected recovery in EBITDA margins. Net revenue grew by 19.9% yoy to Rs 4814 cr in Q3 FY21, led by 7.1% growth in volumes and 11.9% growth in average realisations. Ashok Leyland reported EBITDA margin contraction of 33 bps yoy at 5.3% for the Q3 FY21, which was lower by 233 bps from Sharekhan's expectations.
Ashok Leyland's margin contraction was due to the rise in the raw material cost per vehicle by 13.3% yoy. The raw material per vehicle jumped 3.2% on qoq in this quarter: Reuters