Ashok Leyland Q2 Results Review - Far Better M&HCV Demand Expected; Retaining A 'Buy': Anand Rathi

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.Surpassing our Rs 9.2 billion estimate on the better-than-expected gross margin, Ashok Leyland Ltd.’s Q2 Ebitda slipped 6% yoy to Rs 10.2 billion. We expect India’s medium and heavy commercial vehicle sector to turn positive with 6% growth in H2 and clock a 7% CAGR over FY25-27, led by robust bus demand (an 8% CAGR), continuing replacement demand (refer fig 8), infra/economic activity (order awarding is robust) and the favorable base. Exports would record a strong 12% CAGR, led by recovery in Africa/Asia and the low base. The Ebitda margin would rise due to the greater focus on profit (similar to peers) and the tonnage mix. We introduce our FY27e, with 11%/14%/17% revenue/ Ebitda/PAT growths. Valuations are reasonable at 18 times FY26e/15x FY27e. We retain a Buy with a target price of Rs 290, 13 times FY27e EV/Ebitda (earlier Rs 290, 13 times FY26e) and Hinduja Leyland Finance at Rs 11/share..Click on the attachment to read the full report:.SBI, Tata Motors, Ashok Leyland, Oil India, Gujarat Gas, Aarti Industries Q2 Results Review: HDFC Securities .DISCLAIMERThis 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.

Ashok Leyland Q2 Results Review - Far Better M&HCV Demand Expected; Retaining A 'Buy': Anand Rathi

Valuations are reasonable at 18 times FY26e/15 times FY27E, says the brokerage.

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Ashok Leyland Q2 Results Review - Far Better M&HCV Demand Expected; Retaining A 'Buy': Anand Rathi

Valuations are reasonable at 18 times FY26e/15 times FY27E, says the brokerage.

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