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    Reliance Securities upgrades Ashok Leyland to buy, raises target to Rs 111

    Synopsis

    Buy Ashok Leyland Ltd. at a price target of Rs 111.0 .

    Buy-sale1
    Reliance Securities has upgraded Ashok Leyland to buy from reduce in the long term and revised target price higher to Rs 111. Shares of Ashok Leyland ended up 7.4% at Rs 69.10 on Wednesday while BSE Sensex closed 645.97 points up at 38,177.95.

    Company Financials

    For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 6514.73 crore, down -33.20 % from last quarter sales of Rs 9752.98 crore and down -7.51 % from last year same quarter sales of Rs 7043.96 crore. The company has reported net profit after tax of Rs 273.87 Crore in the latest quarter.

    Investment Rationale

    The brokerage had downgraded its recommendation on Ashok Leyland to reduce due to expected down-cycle, post which it corrected by more than 31%. Sharp correction in price captures most near-term negatives, while likely up-cycle in FY22 would bring back high earning growth and valuation expansion, which transforms into strong potential upside from the current level.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

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