Ashok Leyland Q4 Review - Long Term Thesis Intact: Dolat Capital

Workers weld the cab of a vehicle on an Ashok Leyland Ltd. production line in Hosur, India. (Photographer: Rogan Macdonald/Bloomberg News)

Ashok Leyland Q4 Review - Long Term Thesis Intact: Dolat Capital

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.

Dolat Capital Report

Ashok Leyland Ltd. printed impressive numbers in Q4 led by operating leverage and better mix.

Ebitda stood at Rs 5.34 billion (up 110% QoQ) with improved margin at 7.6% (up 236 basis points QoQ).

Despite the near term slowdown in the commercial vehicle segment, we remain positive on the company on the back of continued, sustainable market share improvement in domestic medium and heavy commercial vehicle (goods), while simultaneously reducing overall dependence on this cyclical segment led by light commercial vehicles, spare parts, exports and the defence verticals among others.

On E-mobility, the company is working on new products in bus and LCV segments.

Click on the attachment to read the full report:

Dolat Capital Ashok Leyland Q4FY21 Result Update.pdf


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