Automobile
Auto & Auto Ancl - CV
from 176 today
We assign a Hold rating with a price target of Rs. 194. Domestic market continues to be resilient aided by aging fleet replacement, backed by new product launches.
Ashok Leyland's 1QFY27 revenues came in line with expectations at Rs96.3bn, with margins at 10.1%. We project a revenue/EBITDA/PAT CAGR of +11%/+9%/+9% over FY26-28E, driven by strong CV leadership, continued market share gains, and diversified business growth, leading to a target price of Rs200.
We maintain our BUY rating on the stock with a revised target price of Rs 200/share, driven by premiumization, market share gains, pricing actions, cost efficiencies, and structural CV demand recovery.
Ashok Leyland's 1QFY27 PAT beat estimates by 12%, supported by strong margin performance and better-than-expected CV demand trends. The company remains focused on non-truck segments, margin expansion, and prudent capex control, leading to a reiterated BUY rating with a TP of INR198.
We maintain our HOLD rating and value the stock at 14x core 1HFY29E EBITDA, along with INR 18/share for other investments, arriving at an unchanged target price of INR 175, implying a 2% upside from the current market price.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
