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Ashok Leyland - Near-term jitters, but inexpensive valuations - Kotak

Commercial vehicle cycle has surprised us negatively and domestic truck volumes are likely to decline by 25% yoy in FY2013E. We expect a modest recovery in truck volumes in FY2014E (+13% yoy) due to uptick in industrial production, moderate decline in interest rates and replacement demand. The stock trades at inexpensive valuations on depressed earnings.

We maintain ADD rating on the stock with a target price of Rs26.

Source: Equity Bulls

Posted On: 2013-01-29 21:08:39

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Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





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