Buy Ashok Leyland Ltd., target Rs 109.0 : Edelweiss Financial Services

Edelweiss Financial Services has Buy call on Ashok Leyland Ltd. with a target price of Rs 109.0. The current market price of Ashok Leyland Ltd. is 80.4. Time period given by analyst is Intra Day, when Ashok Leyland Ltd. price can reach defined target. Edelweiss said that valuations are reasonable with the EPS CAGR of about 30% over FY16-18, strong FCF and RoE estimated to improve to about 25%. It said it expects market share gains momentum to sus tain. However, it said near-term demand outlook is hazy due to weak freight availability and lack of clarity on BS-IV led pre-buying on account of GST implementa tion. It pegged PE at 17.3x FY17 and 14.3x FY18 estimated earnings.