ashok leyland share price: Buy Ashok Leyland, target price Rs 160: Motilal Oswal

Motilal Oswal has buy call on Ltd. with a target price of Rs 160. The current market price of Ashok Leyland Ltd. is Rs 128.5.

Ashok Leyland Ltd., incorporated in the year 1948, is a Large Cap company (having a market cap of Rs 37927.01 Crore) operating in Auto sector.

For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 6000.28 Crore, up 54.74 % from last quarter Total Income of Rs 3877.62 Crore and up 15.20 % from last year same quarter Total Income of Rs 5208.53 Crore. Company reported net profit after tax of Rs 38.41 Crore in latest quarter.

Investment Rationale
Valuations at 16x/10.2x FY22E/FY23E EV/EBITDA are at an early recovery stage and does not fully reflect the management’s focus on adding new revenue streams and profit pools. The brokerage has increased target EV-to EBITDA multiple to 12x FY23E EBITDA (from 10x) to reflect mid-cycle valuations.

Promoter/FII Holdings
Promoters held 51.1 per cent stake in the company as of Dec 30, 2020, while FIIs held 17 per cent, DIIs 17.6 per cent and public and others 14.3 per cent.