This Midcap Auto Stock Reported Robust Sales, Motilal Oswal Recommends Buy For 23% Return

Leading brokerage firm Motilal Oswal Financial Services has placed a buy call on Ashok Leyland Limited for a target price of Rs 180 apiece. Considering the given target price, the brokerage sees 23% potential upside from its current level if you buy the shares at the current market price. It is a mid-cap Auto sector Indian multinational automotive manufacturer, owned by the Hinduja Group, having a market capitalisation of Rs 43,269.67 crore.

Stock Outlook & Returns

On NSE, the stock of Ashok Leyland last traded at Rs 147.40 apiece, down 0.84% from its previous close. Its 52 week high level was recorded on 6 September 2022 at Rs 169.45 apiece and the 52 week low level was recorded on 8 March 2022 at Rs 93.20 apiece, respectively.

The stock surged 3.91% in a week. However, in 3 months, the stock 1.93%. In 1 year, it has given 15.43% positive returns and in the past 3 years, it gave maximum 76.11% positive returns. In 5 years, it has given 18.39% positive returns.

M&HCV sales grew 61% YoY and LCV sales grew 20% YoY

Wholesale volumes rose 45% YoY to 18.1k units (above est.). M&HCV volumes grew 61% YoY to 12.3k units (v/s est.9.9k units), outperforming its peers. LCV volumes increased 20% YoY to 5.9k units (v/s est.5.1k units). "We estimate volumes to grow 41% in FY23, implying flat growth or 16.1k units. The stock trades at 11.4x FY24E EV/EBITDA and 4.7x FY24E P/BV. Maintain Buy," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.