Ashok Leyland shares slipped more than 2% after Goldman Sachs downgraded the stock to a neutral rating, setting a target price of ₹140. The brokerage cited limited upside potential following the stock’s recent rally. As of 9:20 AM, the shares were trading 2.37% lower at Rs 140.62.
Goldman Sachs highlighted that the benefits from a shift toward higher-tonnage vehicles and ongoing margin improvement are largely priced in at current levels.
The commercial vehicle industry continues to benefit from replacement demand, driven by India’s ageing fleet. While Ashok Leyland has gained better-than-expected traction in its light commercial vehicle segment, including the newly launched Saathi light trucks, the brokerage expects passenger car volume growth to outpace commercial vehicles over the next 12 months.
Although consumption-driven sectors are providing some demand support, Goldman Sachs believes that margin expansion is already factored into the stock’s valuation, limiting near-term upside. Based on this, the brokerage maintains a neutral outlook on Ashok Leyland.
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