Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Accumulate Ashok Leyland; target of Rs 144: Arihant Capital

Arihant Capital recommended Accumulate rating on Ashok Leyland with a target price of Rs 144 in its research report dated Jun 28, 2021.

June 28, 2021 / 02:16 PM IST
  • bselive
  • nselive
Todays L/H

Arihant Capital's research report on Ashok Leyland

Ashok Leyland (AL) has reported a stellar set of numbers on all front in Q4FY21. Standalone revenue stood at INR 69,720 Mn, above our estimates of INR 53,226 Mn registering +82.8% YoY/45.6% QoQ. EBITDA stood at INR 5,342 Mn, above our estimate of INR 3,136 Mn, Registering +192%YoY/+~111%QoQ. On the margins front, EBITDA margin was up by 286bps YoY/236bps QoQ to 7.6%, against our estimates 22bps YoY 6%. Standalone adjusted PAT saw an increase of 1686%YoY/665.1% QoQ to INR 2,038 Mn vs below our estimate of INR 127 Mn. Total Volume was up by 17.9%YoY/89.5% QoQ to 11,69,664 units. The total MHCV industry volume had gone up by 66%. During Q4 FY’21, year on year MHCV truck volumes for AL have grown at 111% which is better than the rate of growth of the industry. AL’s MHCV truck market share for Q4 FY’21 has therefore improved to 28.9% vis-a-vis 27.6% in Q4 FY’20.


We Value Ashok Leyland at PE multiple of 36x for parent auto maker for FY23E EPS of INR 3.8 and with the 7% stake in Hinduja Leyland Finance contributing INR 7 per share intrinsic value, We assign an Accumulate rating and value it with SOTP valuation for a target price of INR 144.


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: Jun 28, 2021 02:16 pm
ISO 27001 - BSI Assurance Mark