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Growth, valuations support Ashok Leyland as competition rises in industry

Most brokerages positive about commercial vehicle manufacturer but are concerned about demand

Ashok Leyland

Motilal Oswal Research is positive on it given long-term demand drivers | Photo: Shutterstock

Ram Prasad Sahu Mumbai

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The stock of commercial vehicles (CV) company Ashok Leyland is up 46 per cent in three months, gaining despite worries about a slowdown in sales volume. Brokerages have a mixed view on the country’s second-largest medium and heavy commercial vehicles manufacturer.

The company reported steady March quarter results and its valuation, focus on growth and medium-term prospects are positive, but some brokerages are cautious given near-term demand concerns and the risk of competition increasing in the industry.

In the March quarter, the company improved realisations by 2 per cent sequentially on the back of lower discounts and a better product

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First Published: Jun 20 2024 | 2:22 PM IST

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