Goldman Sachs has maintained a ‘Buy’ rating on Ashok Leyland, raising its target price to ₹280 per share from the previous ₹260, reflecting a positive outlook on growth and margin expansion.
Key takeaways from the report:
- Bus and light commercial vehicle (LCV) demand is driving FY26 growth estimates, supporting revenue expansion.
- The brokerage sees Ashok Leyland’s valuation at 18x forward P/E as attractive, given its growth potential and improving margins.
- The company benefits from a low base effect heading into FY26, which could help deliver strong YoY growth.
- The reverse merger of Hinduja Leyland Finance Ltd. (HLFL) remains on track, with completion expected by Q1FY26, adding further value to the company.
- Goldman Sachs has raised its FY25-27 EPS estimates by 8-10%, reinforcing its bullish stance on the stock.
With strong demand momentum, improving profitability, and key structural developments, Goldman Sachs remains optimistic about Ashok Leyland’s long-term growth trajectory.
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.
