Ashok Leyland may slip to Rs 21-22: SP Tulsian

Tulsian told CNBC-TV18, “Ashok Leyland’s numbers, there looks to be a big disconnect because if you take the forex losses of Rs 186 crore because the market have always been taking that as a non-cash item and considering the results, which we have seen in case of the JSW Energy also where the bottom line was marginally zero and the forex losses of Rs 250 crore.”

He further added, “One has to really see that what kind of forex losses has been effected earlier by the company and what is the estimates, which we all have factored in while taking that, but this is a general mechanical analysis, which nowadays market has been taking that if there is any forex loss the results are not seen to be that bad, but still taking all this into consideration I won’t be keeping my too bullish view on the Ashok Leyland because if you see the relative valuations of Tata Motors and Ashok Leyland though the Tata Motors has presence in the commercial vehicles as well as the passenger cars but still- and maybe the global operations, but Ashok Leyland is still ruling quite expensive than the Tata Motors and there is no reason because they have to struggle for their market share for which they have to compromise on the margin as well. So, I won’t be too comfortable taking a call on the stock. I won’t be surprised to see the stock correcting to Rs 21-22 maybe in the next 15 days or so.”