Anand Rathi Securities has recommended a buy rating on Ashok Leyland, with price target of Rs 55, in its report dated November 10, 2009.

"AL’s market share in 1Q was 17.6%; lower as it was clearing out channel inventory. Market share is expected to be maintained at 23.6% attained in 2Q. Avia is close to break-even – it would achieve cash break-even in the near term. Much effort has been put into re-engineering and cost reduction there. AL trades at a PE of 18.4x FY11e. A faster-thanexpected cyclical upswing in M&H CVs would open upside risks to our estimate (currently estimated at base level). Maintain Buy." says Anand Rathi Securities report.

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