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Accumulate Ashok Leyland; target of Rs 168: KR Choksey

KR Choksey recommended accumulate rating on Ashok Leyland with a target price of Rs 168 in its research report dated August 04, 2022.

August 06, 2022 / 08:15 AM IST
 
 
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KR Choksey's research report on Ashok Leyland


For Q1FY23, Ashok Leyland reported revenue of INR 72,229 Mn, an increase of 144.8% YoY while declining by 17.4% QoQ. Total volumes for the quarter were at 39,651 units, a growth of 120.4% YoY and a decline of 18.6% QoQ. EBITDA was INR 3,203 Mn, which improved by 328.6% YoY while declining by 58.7% QoQ. EBITDA margins were at 4.4% in Q1FY23 vs -4.7% in Q1FY22. EBITDA margins declined by 444 bps QoQ. Adj. PAT was at INR 550 Mn, an improvement of 119.6% YoY over a loss of 2,806 Mn in Q1FY22. Adj. PAT declined 87.2% QoQ. Adj. PAT Margin was 0.8%, an improvement from -9.5% in Q1FY22 but a decline from 4.9% in Q4FY22.



Outlook


We expect a Revenue/ EBITDA CAGR of 32.4%/ 96.5% respectively over FY22 to FY24E, on a covid impacted base of FY22. We have assigned a P/E multiple of 24x on FY24E EPS of INR 7.0 to arrive at a revised target price of INR 168/share (earlier target INR 145/share). The target price implies a potential upside of 13.3% from the CMP. Accordingly, we maintain our “ACCUMULATE” rating on the shares of Ashok Leyland Ltd.

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Ashok Leyland - 040822 - kr

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first published: Aug 6, 2022 08:15 am
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