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Ashok Leyland share price falls 4% after CLSA retains underperform call; raises FY21-22 EBITDA by 6-8%

CLSA has raised its FY21-22 EBITDA by 6-8 percent and does not expect any meaningful positive triggers in the near term.

June 29, 2020 / 10:03 AM IST
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Ashok Leyland share price shed over 4 percent in the morning trade on June 29 after global research firm CLSA maintained its underperform call on the stock.

CLSA has maintained its underperform rating on the stock but has raised the target price to Rs 53 from Rs 47 per share. The firm is of the view that the truck cycle is likely to revive only in FY22, according to a report by CNBC-TV18.

Heavy trucks made a temporary comeback in Q4 with operating results better than estimates but was driven entirely by higher realisations. Share of heavy trucks improved to 66 percent within M&HCVs, CLSA added

The research firm has raised its FY21-22 EBITDA by 6-8 percent and does not expect any meaningful positive triggers in the near term.


The stock price has seen a steady fall in the last 7 days and was trading at Rs 50.15, down Rs 2.20, or 4.20 percent. It has touched an intraday high of Rs 52.15 and an intraday low of Rs 50.05. It was also one of the most active stocks on NSE in terms of volumes with 98,24,732 shares being traded at 09:36 hours.

Hinduja Group flagship firm Ashok Leyland on June 25 reported a 92.31 percent decline in consolidated net profit at Rs 57.78 crore in the fourth quarter ended March 31. The company had posted a net profit of Rs 751.71 crore in the same quarter of previous fiscal, Ashok Leyland said in a regulatory filing.

Revenue from operations during the quarter under review stood at Rs 5,088.04 crore as against Rs 9,874.04 crore in the year-ago period.


According to Moneycontrol SWOT Analysis powered by Trendlyne, Ashok Leyland has been reporting fall in quarterly revenue and net profit (YoY) with high interest payments compared to earnings.

Moneycontrol technical rating is neutral with moving averages being bearish and technical indicators being neutral.

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Sandip Das
first published: Jun 29, 2020 10:03 am