Prabhudas Lilladher has maintained market performer rating on Ashok Leyland with target price of Rs 43 in its May 09, 2008 report. "The company has given a volume guidance of about 10-12% growth in FY09 backed by a slew of launches (4930 and 4018 tractor trailers), healthy performance from the bus segment and increasing exports to the Middle-East. While rising raw material cost is a concern, the company hopes to maintain margins above 10% levels through alternate sourcing of raw materials and aggressive value engineering methods. Rising interest burden is expected to restrict PAT growth going forward. The company currently trades at 10.8x FY09E EPS of Rs 3.7 and 9.1x FY10E EPS of Rs 4.3. We maintain Market Performer rating on the stock" according to Prabhudas Lilladher report.  

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