Sumit Bilgaiyan
We believe Ashok Leyland has multiple levers in its favour, which will drive earnings growth. The growth momentum experienced by the domestic commercial vehicle industry in recent months is poised to continue over the next couple of years due to policy changes at the macro level, and shifting demand preference at the buyer level.
While Ashok Leyland remains well positioned to drive the recovery in the domestic commercial vehicle (CV) segment, in terms of demand, we have seen a strong shift in higher tonnage vehicles in the past few years and we believe the demand for higher tonnage CVs will continue to remain strong.
Ashok Leyland is expected to continue expanding its market share led by network expansion and new product launches. Outlook for FY19 remains positive. We remain buyers in Ashok Leyland with short term target price of Rs 171 per share.
Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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