Press "Enter" to skip to content

Reliance Securities has buy on Ashok Leyland, target price Rs 111

Reliance Securities has a buy rating on Ashok Leyland in the long term with a target price of Rs 111. Shares of Ashok Leyland ended down 0.6% at Rs 79.90 on Tuesday while the BSE sensex closed 181.40 points down at 41,461.26.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 5033.06 crore, down -22.74% from last quarter sales of Rs 6514.73 crore and down -41.16% from last year same quarter sales of Rs 8553.68 crore. The company has reported net profit after tax of Rs 69.71 crore in the latest quarter.

The company’s top management includes Dr.Andreas H Biagosch, Dr.Andrew C Palmer, Mr.Dheeraj G Hinduja, Mr.Gopal Mahadevan, Mr.Jean Brunol, Mr.Jose Maria Alapont, Mr.Manisha Girotra, Mr.R J Shahaney, Mr.Sanjay K Asher, Mr.Saugata Gupta. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 30-09-2019, the company has a total of 2,935,527,276 shares outstanding.

Investment Rationale

The company’s increased focus on non-cyclical business of exports, spare parts, after sales service revenue and defence segment would start paying off, said Reliance Securities. The stock’s current valuation of around 12 times FY22 estimated EPS appears attractive, said Reliance Securities.

Source: Economic Times