Hold Ashok Leyland, target Rs 120: Sharekhan

Sharekhan has a hold call on Ashok Leyland Ltd. with a target price of Rs 120.0 . The current market price of Ashok Leyland Ltd. is Rs 109.85 Time period given by the brokerage is a year. when Ashok Leyland Ltd. price can reach defined target. Ashok Leyland Ltd., incorporated in 1948, is a largecap company with a market cap of Rs 31537.94 crore.

Investment rationale by Share Khan

ALL has seen significant correction lately on account of two reasons – losing market share (in line with the strategy to not compromise on margins) along with policy changes now. The stock has already corrected by over 30% from its peak and trades at EV/EBITDA of 10.1x and P/E of 18.5x its FY2020 numbers. We downgrade the stock to Hold with a price target of Rs. 120 (20x its FY2020 earnings estimates), given the limited upside and near-term growth pressure.