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Last Updated : Feb 13, 2020 09:43 AM IST | Source: Moneycontrol.com

Ashok Leyland Q3 show disappoints the Street; should investors buy, sell or hold?

Revenue from operations during the quarter declined 36.5 percent year-on-year to Rs 4,015.6 crore as volumes dropped 28.7 percent YoY.

 
 
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Ashok Leyland share price slipped 5 percent in early trade on February 13 after the company reported a weak set of numbers for the quarter ended December 2019.

It has registered a massive 92.7 percent year-on-year fall in Q3FY20 standalone profit to Rs 27.7 crore in the quarter ended December 2019, from Rs 380.8 crore in the same period last year.

Revenue from operations during the quarter declined 36.5 percent year-on-year to Rs 4,015.6 crore as volumes dropped 28.7 percent YoY.

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Credit Suisse | Rating: Neutral | Target: Rs 75 per share

The margin miss was drives a weak quarter. The staff costs dropped sharply and it should normalise in subsequent quarters.

Morgan Stanley | Rating: Overweight | Target: Rs 111 per share

Despite a tough demand environment, the company maintained good cost discipline.

Reported earnings were in-line with our estimates as the demand environment remains subdued.

Nomura | Rating: Buy | Target: Rs 97 per share

Maintain our view of a 15%/25% industry recovery in FY21/22 and expect margin to revive as the volume growth trajectory picks up in FY21.

The valuations are not expensive at current levels.

At 09:19 hrs Ashok Leyland was quoting at Rs 79.60, down Rs 1.75, or 2.15 percent on the BSE.

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First Published on Feb 13, 2020 09:42 am
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