Ashok Leyland - All Set For A Strong Commercial Vehicle Upcycle: Centrum Broking Initiates Coverage
The logo on the front grill of an Ashok Leyland Ltd. goods-carrier truck, in Mumbai, India. (Photographer: Abhijit Bhatlekar/Bloomberg News)  

Ashok Leyland - All Set For A Strong Commercial Vehicle Upcycle: Centrum Broking Initiates Coverage

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Centrum Broking Report

We are optimistic on Ashok Leyland Ltd. as we believe that the commercial vehicle industry is getting into an economic recovery led upcycle for the next two to three years.

CV industry declined by 29%/21% in FY19/FY20 pushing the sales down to a decade low levels.

Since, CV industry is highly dependent on the gross domestic product with a correlation of 0.9, we expect a strong recovery in CV cycle on a low base as India’s GDP is expected to grow at low double digits in FY22.

Over the last few years, the company has strengthened its light commercial vehicle portfolio and has gained market share.

Click on the attachment to read the full report:

Centrum Ashok Leyland - Initiating Coverage .pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.