NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Motilal Oswal expects Ashok Leyland Ltd. to emerge as a major beneficiary of a pickup in commercial vehicle demand. Over the years, Ashok Leyland has effectively reduced its business cyclicality by focusing on non-truck segments. Its continued emphasis on margin expansion and prudent control of capex is expected to help improve returns in the long run.
Further, a net cash position will enable Ashok Leyland to invest in growth avenues in the coming years. However to factor in the risks due to the ongoing Middle East conflict, the brokerage has
- lowered its volume growth assumptions to 9% CAGR from 11.5% earlier,
- expect some margin pressure in FY27E, before they recover in FY28E, albiet lower than brokerage's prior assumptions.
Overall, the brokerage has lowered its estimates by 13% each for FY27E/FY28E.
Following the recent correction, the stock now appears attractively valued at 21.0x FY27E and at 17.6x FY28E. Assuming the geopolitical conflict does not continue beyond Q1 FY27, the brokerage has reiterated its Buy rating on the stock with a target price of Rs 185 per share. The valuation is based on 13x December 2027E EV/Ebitda, along with an additional ~Rs 10/share for the NBFC business).
Click on the attachment to read the full report:
ALSO READ: Gold Price Today: MCX Gold Rate Falls As Trump Sends Mixed Signals on Iran Conflict
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
