Citi has retained its ‘Buy’ rating on Ashok Leyland, with a target price of ₹260, despite mixed performance in its November volumes. Domestic commercial vehicle (CV) volumes declined 4% YoY and 11% MoM, with varying trends across segments.
Medium and Heavy Commercial Vehicle (MHCV) truck volumes dropped 2% YoY and 8% MoM, while MHCV buses recorded a robust 33% YoY growth (+6% MoM). However, Light Commercial Vehicle (LCV) volumes weakened, falling 14% YoY and 19% MoM.
On the export front, Ashok Leyland delivered a standout performance, with CV export volumes surging 63% YoY (+34% MoM). Overall, including exports, total CV volumes grew marginally by 1% YoY but declined 8% MoM. Citi remains positive on Ashok Leyland’s long-term prospects, citing its diversified portfolio and increasing international presence as key strengths.
