Macquarie has maintained a ‘Neutral’ rating on Ashok Leyland, setting a target price of ₹226 per share, reflecting a modest upside from the current market price of ₹219.64.
Key takeaways from the report:
- Q3FY25 EBITDA margins surprised positively, driven by better-than-expected blended realization and lower estimated expenses.
- Demand outlook remains positive, with expectations of further improvement as macro conditions strengthen and interest rates decline.
- E-bus order traction and overall order book remain strong, reinforcing the company’s growth potential in the EV and commercial vehicle segment.
- Cost escalation is expected to be minimal, despite the mandatory requirement of AC cabins for commercial vehicles starting June 2025.
While Ashok Leyland benefits from solid demand trends and margin improvements, Macquarie remains cautious, awaiting further clarity on macroeconomic developments and cost dynamics.
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.