Sharekhan's research report on Ashok Leyland
ALL reported weak results for Q1FY22, marred by lower volumes due to lockdown restrictions. We expect ALL’s profitability to improve significantly, with its EBITDA growing at 159% CAGR for FY2021-23E, aided by robust 38.2% revenue CAGR and sharp margin expansion. The stock is trading below its average historical multiples at P/E of 18x and EV/EBITDA of 9.8x its FY2023E estimates. Ashok_Leyland-3R-Aug17_2021.
Outlook
We retain our Buy rating on Ashok Leyland Limited (ALL) with an unchanged PT of Rs 151, owing to expected growth recovery in CV industry post the normalization of economic activities.
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