Sharekhan's research report on Ashok Leyland
Operating margin performance in Q4FY2023 was marginally above estimates. ALL is expected to benefit from its aggressive strategy of growing its market share through increased penetration across all regions and new product launches. The stock is trading at a P/E of 17.6x and EV/EBITDA of 8.5x its FY2025E.
Outlook
We retain our Buy rating on Ashok Leyland Limited (ALL) with a revised PT of Rs. 181 on expectation of an 11% volume CAGR along with 110bps expansion in EBITDA margin in the next two years, recovery in the bus segment, and RM cost tailwind.
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