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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
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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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