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Hold Ashok Leyland; target of Rs 60: Sharekhan

Sharekhan recommended Hold rating on Ashok Leyland with a target price of Rs 60 in its research report dated June 26, 2020.

June 27, 2020 / 12:12 PM IST
 
 
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Sharekhan's research report on Ashok Leyland


Ashok Leyland (ALL) Q4 results were mixed with operating performance ahead of estimates but provision on subsidiary investment led to higher than expected loss. MHCV demand is expected to remain under pressure over the next three to four quarters on account of GDP contraction in FY21 due to COVID-19. Economic activity would take time to reach normalcy and we expect growth to recover in FY22 which would revive truck demand. ALL valuations at 10x FY22 EV/EBIDTA are close to long term historical average of 11-12x.



Outlook


Hence we retain Hold rating on the stock with revised PT of Rs 60.




For all recommendations report, click here

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first published: Jun 27, 2020 12:12 pm

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