Hold Ashok Leyland; target of Rs 120: SPA Securities

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

SPA Securities' report on Ashok Leyland

Ashok Leyland (AL) Standalone revenue increased 19.9% YoY at INR 48.1 bn. Realizations improved ~12% YoY and was flat QoQ. Volume increased ~7% YoY/ 72% QoQ to 3.8k units. Despite favourable mix of 50% share of MHCV, EBITDA margin came in at 5.3%. EBITDAM was impacted due to impact of higher raw material cost. EBITDA for the quarter stood at INR 2.5 bn, AL had a onetime exception loss of INR 460mn due to VRS. Adjusting for that, PAT for the quarter stood at INR 267 mn (-11%YoY), due to higher depreciation. Net debt for the company reduced from INR30.8bn in 2QFY21 to INR 28.8bn in 3QFY21.

Outlook

Considering bottoming out in the domestic M&HCV sales volume, we value ASHLEY's standalone business at 15x FY22 EV/EBITDA and assign INR 8/sh for HLFL stake and recommend HOLD on the stock with a target of INR 120.

For all recommendations report, click here

Disclaimer: 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.

Read More