AL’s 3QFY22 revenue at Rs 55.3bn (PLe: Rs 57.3bn) grew 15%/24% YoY/QoQ led by 2%/24% growth in volumes. ASPs remained flat QoQ at Rs 1.6mn. EBITDA margin at 4% was impacted by high raw material cost (RM cost 78% of sales vs 74/77% YoY/QoQ). MHCV market share improved by ~140bps for AL. The company, under its EV business is setting up a facility in Spain for which ~USD 200mn will be raised. We believe new CNG models to be launched in Mar-22 and increase in bus volumes as economy opens up, will aid in gaining further market share.
OutlookWe marginally reduce our estimates for FY23/24 to factor in cost pressures. Maintain ‘BUY’ with revised TP of Rs 175 based on 14x Dec-23 EV/EBITDA (15x earlier) and ~Rs 14 for HLF.
More InfoAt 15:08 hrs Ashok Leyland was quoting at Rs 128.30, up Rs 4.45, or 3.59 percent.It has touched an intraday high of Rs 128.45 and an intraday low of Rs 122.45.It was trading with volumes of 793,427 shares, compared to its thirty day average of 1,124,190 shares, a decrease of -29.42 percent.In the previous trading session, the share closed down 6.84 percent or Rs 9.10 at Rs 123.85.The share touched its 52-week high Rs 153.40 and 52-week low Rs 106.20 on 16 November, 2021 and 19 April, 2021, respectively.Currently, it is trading 16.36 percent below its 52-week high and 20.81 percent above its 52-week low.Market capitalisation stands at Rs 37,662.81 crore.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
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