- Ashok Leyland shares rose nearly 3% to an all-time high of Rs 142.63 on Friday
- The stock gained over 5% since Monday's close after rallying for three sessions
- BoFA reiterated a Buy rating after meeting Ashok Leyland's senior management
Ashok Leyland's share price rose nearly 3% to reach an all-time high, trading at Rs 142.63 apiece on Friday. Before this, the scrip rallied for the past three trading sessions, and it has gained over 5% since Monday's close.
Interestingly, BoFA in a note on Sept 17, had reiterated its 'Buy' rating for the stock after the brokerage hosted the senior management of Ashok Leyland and sensed confidence in the industry growth outlook.
The company reaffirmed the mid-single digit volume growth guidance for FY26 for medium and heavy commercial vehicles, the brokerage noted.
The brokerage also noted that, beyond the near term, the second-order benefit of potential consumption revival bodes well for M&HCV over the mid-term, after a couple of slow years. The company noted that truck operator fundamentals are in good shape with rising rentals & healthy utilisation levels, BoFA said.
"We sensed Investor concern on battery business investment. Management clarified that initial capital commitment is limited to Rs 300-500 crore for battery packs over the next 12-18 months," the brokerage noted.
The scrip rose as much as 2.79% to Rs 142.63 apiece. It pared gains to trade 1.52% higher at Rs 140.87 apiece, as of 11:23 a.m. This compares to a 0.45% decline in the NSE Nifty 50 Index.
It has risen 18.60% in the last 12 months. Total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 70.
Out of 44 analysts tracking the company, 34 maintain a 'buy' rating, six recommend a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 2.6%
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