Ashok Leyland may clock healthy Q4 numbers; stock to remain an outperformer: Kunj Bansal

In a chat with ET Now, Kunj Bansal, ED & CIO, Centrum Wealth Management, talks about why he continues to prefer Ashok Leyland.

ET Now: You were positive on Ashok Leyland in the past. Does it still comprise among your top favourites?

Kunj Bansal: Yes. It remains one of our holdings. It has dropped to Rs 64 level now, thanks to the falling market.

ET Now: Wherever it is, it still remains an outperformer.

Kunj Bansal: True. It will continue to be.

ET Now: Why do you say that?

Kunj Bansal: The monthly sales numbers by the heavy commercial vehicle (HCV) segment has been pretty good. There is an underlying assumption that with some lag, the economic growth will pick up sooner than later.

In case, things do not go as expected, then there could be lots of alterations in assumptions.

Nonetheless, data for last five-six months has been strong.

The healthy numbers for the last three months will get reflected in the March quarter numbers, The December and September quarter numbers had also showed a significant improvement for Ashok Leyland.
Expect the same for this quarter as well.