Ashok Leyland could give 15-20% upside over next 3-4 weeks

Ashok Leyland is on the radar. Now what is the basic underlying thought to revisit a stock or revisit a company which has reported its biggest quarterly loss ever? I guess their thinking is very simple. Firstly, for the moment it appears that traders and HNI traders are revisiting cyclicals as a group, secondly the buzz which I have picked up is that Ashok Leyland is seriously looking at reducing their debt burden by selling non-core assets worth about Rs 800-1000 crore, which automatically will take care of one third of their debt.
Their market share in a tough market has also gone up by about 3% to about 25% which means at a time when the CV market is contracting, Ashok Leyland has managed to regain some market share. Their valuation is extremely attractive. The stock is not at a 52-week high and has recovered only marginally from the 52-week low.

So there is hope built in here that company will do all the right things, the CV cycle will turn around, debt burden will come down, but at a time when visibility is priced to perfection, maybe there is merit in taking this leap of faith and the leap of faith for the moment is that you buy Ashok Leyland, keep it for maybe next three to four weeks and you could easily make an upside of about 15% to 20%.