Hold Ashok Leyland, target Rs 120: Sharekhan
Hold Ashok Leyland Ltd. at a price target of Rs 120.0 .
Investment rationale by Share Khan
ALL has seen significant correction lately on account of two reasons – losing market share (in line with the strategy to not compromise on margins) along with policy changes now. The stock has already corrected by over 30% from its peak and trades at EV/EBITDA of 10.1x and P/E of 18.5x its FY2020 numbers. We downgrade the stock to Hold with a price target of Rs. 120 (20x its FY2020 earnings estimates), given the limited upside and near-term growth pressure.