Accumulate Ashok Leyland, target Rs 183: Soumen Chatterjee

Ashok Leyland's Circuit S is India's first swap battery bus which is designed for Indian conditions with seating capacity ranging from 25-35 passengers. (Moneycontrol)

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26 Aug, 2025 12:21

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Soumen Chatterjee

Ashok Leyland is trading at 25.8 times its trailing earnings (down from 33-34 times a few months back) with a robust RoE of 22 percent. Uptick in economic growth and pick up in infrastructure activity is seen. Stricter enforcement of overloading norms is a positive development but competitive pressure is likely to remain high.

We maintain our accumulate rating with a price target of Rs 183 per share (discounting the stock to trade at 24 times its FY19E earnings of Rs 7.64 per share).

Disclaimer: The author is Director Research at Guiness Securities. 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.