Ashok Leyland reports fastest growth after Oct-16 - Auto sales numbers analysis: Angel Broking

Views of Mr. Shrikant Akolkar (Research Analyst- Automobiles, Angel Broking):

Ashok Leyland's total volumes jumped up by 25% to 13,634 units in August-17. We had expected total volumes of 12,367 in August-17 so the actual numbers are 10% ahead of our expectations. The MHCV volumes were up 29% while LCV volumes were up by 14%. This is clearly a strong indication of robust demand environment. The company has launched an Intelligent Exhaust Gas Recirculation technology (iEGR) and has guided of strong demand in the remainder of the year owing to iEGR. Company had reported a poor set of numbers in the first two months of the current fiscal owing the BSIV transition; however after that phase gotten over, AL has been consistently maintaining double digit growth in the volumes. For the past three months, i.e. June-17 to August-17, company has reported total 17% yoy growth in the volumes which is much higher than 3% growth it achieved in FY17. We maintain accumulate rating on Ashok Leyland with a price target 127.

Shares of ASHOK LEYLAND LTD. was last trading in BSE at Rs.112.85 as compared to the previous close of Rs. 107.05. The total number of shares traded during the day was 2190437 in over 8723 trades.

The stock hit an intraday high of Rs. 113 and intraday low of 107.4. The net turnover during the day was Rs. 244063895.

Source : Equity Bulls

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