Ashok Leyland Q3 Results Review - Focus On Profitability To Supersede Market Share: Prabhudas Lilladher

Prabhudas Lilladher Report

We believe Ashok Leyland Ltd.'s is well placed to sustain its recent market share gains led by

1. strong demand for modular AVTR trucks,

2. network growth and

3. product launches. light commercial vehicle will benefit from filling of white space, growth in end markets and network growth.

Price hike, benign input cost, operating leverage and cost control will lead to margin expansion (Ebitda margin +c390 basis points over FY23-26E).

We change our FY24/FY25/FY26 earning per share estimates by -3%/-4%/0.4% to factor in Q3 FY24 results and management commentary on volume and margin sustainability.

Maintain ‘Buy’ with target price of Rs 210 on March 2026E enterprise value/Ebitda of 11 times (includes ~Rs 12 for HLF) and roll over to March 2026.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.