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Ashok Leyland a market outperformer: P Lilladher
Prabhudas Lilladher has maintained market performer rating on Ashok Leyland with target price of Rs 43. The company has given a volume guidance of about 10-12% growth in FY09 backed by a slew of launches and increasing contribution from the non-cyclical business.
Prabhudas Lilladher has maintained market performer rating on Ashok Leyland with target price of Rs 43, in its May 23, 2008 report. "Ashok Leyland witnessed a 1% decline in volumes in FY08 in line with the industry trend. The management expects the industry to grow in the higher single digit in FY09 and hopes to increase its market share to 30% (currently at 28.6%) in FY09 backed by a slew of new launches across segments. The company has given a volume guidance of about 10-12% growth in FY09 backed by a slew of launches and increasing contribution from the non-cyclical business. The company has taken a price hike of 2.5% in April 08 to compensate for the rising raw material costs. The management has indicated that it will strive to maintain its margins at 10%. The scrip currently trades at 10.2x FY09E EPS of Rs 3.7 and 8.6x FY10E EPS of Rs 4.3. We maintain Market Performer rating on the stock" according to Prabhudas Lilladher report.
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