Accumulate Ashok Lelyand; target of Rs 69: Arihant Capital

Arihant Capital 's research report on Ashok Lelyand

Ashok Leland (AL) loss for the quarter stood at Rs 3,888 Mn during Q1FY21 due to weak macro-economic factors coupled with the movement restrictions to contain the coronavirus pandemic. Standalone revenue stood at Rs 6,452 Mn for Q1FY21 vs Rs.56,118 Mn for the Q1FY20. Company has reported EBITDA loss of Rs 3,332 Mn, as compared to EBITDA gain of Rs 1,830 Mn in Q1FY20. Q1FY21 Concall highlights.

Outlook

We Value Ashok Leyland at PE multiple of 25x for parent auto maker for FY22E EPS of Rs 2.5 and with the 7% stake in Hinduja Leyland Finance contributing Rs 7 per share intrinsic value, We maintain our rating to Accumulate and value it with SOTP valuation for a target price of Rs 69.