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Ashok Leyland Q4 Results Review: Margin Beat Aided By Improved Mix; Motilal Oswal Maintains 'Buy'

Motilal Oswal reiterates Buy rating with and raises target price to Rs 275 (based on 11x FY27E EV/Ebitda + ~Rs 19/share for the NBFC).

<div class="paragraphs"><p>Ashok Leyland's Q4 net profit at Rs 12.5 billion came in ahead of our estimate of Rs 10.8 billion, aided by better-than-expected operational performance and higher other income.(Representational. Image: Ashok Leyland website)</p></div>
Ashok Leyland's Q4 net profit at Rs 12.5 billion came in ahead of our estimate of Rs 10.8 billion, aided by better-than-expected operational performance and higher other income.(Representational. Image: Ashok Leyland website)
Over the years, Ashok Leyland has done well to reduce its business cyclicality by focusing on non-MHCV segments. Further, a net cash position would help Ashok Leyand invest in growth avenues in the coming years.
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