Morgan Stanley has reaffirmed its ‘Overweight’ stance on Ashok Leyland, setting a target price of ₹284 per share, indicating a 29% upside potential from the current market price of ₹219.64.
Despite a 2% year-on-year (YoY) decline in volumes, the company reported an 80 basis points (bps) improvement in EBITDA margins, driven by an improving mix of tippers and a ramp-up in high-margin exports.
Morgan Stanley also believes that non-auto businesses will support margins, adding resilience to the company’s financial performance. Additionally, as the Medium & Heavy Commercial Vehicle (MHCV) cycle recovers, margins could positively surprise investors.
With strong export momentum, an improving product mix, and a favorable industry cycle, Morgan Stanley sees significant upside potential in Ashok Leyland shares over the coming quarters.
Disclaimer: The above article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.
