Buy Ashok Leyland, target price Rs 83: Edelweiss

Edelweiss has given a buy rating to Ashok Leyland with a target price of Rs 83. The share price moved down by 0.79 per cent from its previous close of Rs 76.20. The stock’s last traded price is Rs 75.60.

Ashok Leyland Ltd., incorporated in the year 1948, is a Large Cap company (having a market cap of Rs 22368.72 Crore) operating in Auto sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1480.16 Crore, down 70.91 % from last quarter Sales of Rs 5088.04 Crore and down 77.28 % from last year same quarter Sales of Rs 6514.73 Crore. The Company reported net profit after tax of Rs -385.85 Crore in latest quarter.


Investment Rationale
Stock is showing volatility contraction pattern since last two weeks. On weekly timeframe, stock is forming double inside bar pattern. A close above previous week high can lead to strong upward momentum.

Promoter/FII Holdings
Promoters held 51.5 per cent stake in the company as of June 30, 2020, while FIIs held 15.7 per cent, DIIs 14 per cent and public and others 18.8 per cent.