Buy Ashok Leyland, target price Rs 88: Edelweiss

Edelweiss has given a buy rating to Ashok Leyland with a target price of Rs 88. The share price moved down by 0.42 per cent from its previous close of Rs 83.85. The stock’s last traded price is Rs 83.50.

Ashok Leyland Ltd., incorporated in the year 1948, is a Large Cap company (having a market cap of Rs 24629.07 Crore) operating in Auto sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1480.16 Crore, down 70.91 % from last quarter Sales of Rs 5088.04 Crore and down 77.28 % from last year same quarter Sales of Rs 6514.73 Crore Company reported net profit after tax of Rs -385.85 Crore in latest quarter.

Investment Rationale
Stock has recovered to its pre-covid level i.e. levels seen in the month of February. Now we expect stock to start its next leg of upmove.

Promoter/FII Holdings
Promoters held 51.5 per cent stake in the company as of June 30, 2020, while FIIs held 15.7 per cent, DIIs 14 per cent and public and others 18.8 per cent.