Ashok Leyland’s stock has drawn mixed reactions from brokerages. Morgan Stanley has maintained its ‘Overweight’ rating on the company with a target price of ₹284, implying a significant upside potential of around 32% from the current market price of ₹214.40. The brokerage views the company’s recent strategic move to shut down its UK electric vehicle (EV) manufacturing operations as a positive development.
According to Morgan Stanley, the decision is expected to reduce cash burn and bring greater economies of scale by focusing on its Indian supply base. This realignment, it believes, will strengthen Ashok Leyland’s cost structure and support long-term profitability.
On the other hand, Jefferies has maintained a ‘Hold’ rating on the stock with a target price of ₹215, indicating limited upside from current levels. The contrasting views reflect differing assessments of the near-term risks and the pace at which the company’s restructuring efforts may translate into tangible gains.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
