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Ashok Leyland News Update : Ashok Leyland’s stock increased by almost 6% to reach an all-time high of Rs 222.85 per share on May 27, following positive feedback from the Street regarding its strong January-March quarter (Q4FY24) performance. Brokers reaffirmed their favorable opinion of the company in light of the favorable forecast for CV demand, reasonable values, and excellent guidance for FY25.
Ashok Leyland was raised from a “sell” rating by Emkay Institutional Equities analysts to a “buy” rating with a target price of Rs 250 per share, which indicates a 12 percent increase from current levels.
“We think the pricing power and margin expansion for CV OEMs will sustain amid intact fleet operator profitability; this drives FY26E EPS up ~19 percent.” In a result-review analysis, they stated that Ashok Leyland is still one of the least costly OEMs, even after its stock price increased by 21% in just three months.
In keeping with its ‘buy’ recommendation on Ashok Leyland, JM Financial also provided a target price of Rs 275 per share, emphasizing that it is focused on profitable growth. Profitability is anticipated to be supported by intelligent cost control activities and benign commodity costs. Over FY24–26E, we project an 8%/ 22% revenue/ EPS CAGR, the analysts continued.
In Q4FY24, Ashok Leyland’s net profit increased by 20% YoY to Rs 900 crore, despite a 3% YoY decrease in operating revenue to Rs 11,266 crore.
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The car company reported that it gained 5.8 percentage points in market share and became the market leader in the M&HCV Bus segment.
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Concurrently, the business declared that KM Balaji will take over as Chief Financial Officer on June 1, 2024. As Director of Strategic Finance and M&A, Gopal Mahadevan, CFO and Whole Time Director, will be connected to Ashok Leyland.
According to an exchange filing by the firm, Mahadevan will concentrate on M&A strategies and the expansion goals of Ashok Leyland’s subsidiary companies in his new position.
Ashok Leyland’s stock has increased by more than 22% so far this year, surpassing the benchmark Nifty 50 index’s 6% gain.
