Motilal Oswal is bullish on Ashok Leyland recommended buy rating on the stock with a target price of Rs 65 in its research report dated June 26, 2020.
Motilal Oswal 's research report on Ashok Leyland
4QFY20 performance was better than expected, led by a better mix. While the FY21 outlook is unclear, expansion in LCVs would reduce the pain. Net debt is inching up, but stands comfortable. - We lower our FY21/FY22E EPS by 96%/20% to factor low volumes, adverse operating leverage, and increased gearing.
We maintain our Buy rating in anticipation of recovery 2HFY21 onward. Maintain Buy, with TP of ~INR65 [INR8/sh of HLFL + 10x Jun’22 EV/EBITDA v/s ~11x 10-year median EV/EBITDA).
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