Buy Ashok Leyland, target price Rs 137: Geojit

Geojit has buy call on Ashok Leyland Ltd. with a target price of Rs 137. The current market price of Ashok Leyland is Rs 124.55.

Time period given by analyst is one year when Ashok Leyland Ltd. price can reach defined target.

Ashok Leyland Ltd., incorporated in the year 1948, is a Large Cap company (having a market cap of Rs 36738.12 Crore) operating in Auto sector.


Ashok Leyland Ltd. key Products/Revenue Segments include Commercial Vehicles, Spare Parts & Others, Sale of services, Engine & Gensets, Ferrous Castings, Scrap, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 5586.91 Crore, up 36.16 % from last quarter Total Income of Rs 4103.27 Crore and up 44.08 % from last year same quarter Total Income of Rs 3877.62 Crore. Company reported net profit after tax of Rs -84.29 Crore in latest quarter.

Investment Rationale
Considering the positive announcement by the company and Govt.’s intent to kick start the Infra development the brokerage excepts the valuation to continue at current level, and reiterate buy rating.

Promoter/FII Holdings
Promoters held 51.54 per cent stake in the company as of 30-Sep-2021, while FIIs owned 16.33 per cent, DIIs 19.54 per cent.