Buy Ashok Leyland; target Rs 55: Anand Rathi

ALSO READ See previous views by Anand Rathi Securities See what other Experts & Brokerages are saying about Ashok Leyland See messages about Ashok Leyland Ashok Leyland BSE | NSE 10/02/12 Are Mutual Funds betting on Ashok Leyland?

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.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment.........