Dolat Capital recommended Accumulate rating on Ashok Leyland with a target price of Rs 109 in its research report dated May 27, 2019.
Dolat Capital's research report on Ashok Leyland
Ashok Leyland (AL)’s revenue and operating performance were in line with our estimates in 4QFY19. We believe M&HCV truck growth will trend down in 1QFY20, due to impact of relaxation in axle load norm, liquidity constraint, a high base, and high fuel prices. However, the growth momentum will continue to be strong for the medium-to-long term, driven by 1) pick-up in infrastructure, construction, e-commerce, and mining activities; 2) pre-purchases for BS-VI in 2Q/3QFY20; and 3)
introduction of scrappage policy in FY21.
We recommend Accumulate, with TP ` 109(16xFY21E EPS).
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