Morgan Stanley has maintained its Overweight rating on Ashok Leyland, assigning a target price of ₹284, implying a 19.2% upside from the current market price of ₹238.26. The brokerage noted that while Q4 revenue came in below expectations, EBITDA was ahead of estimates.
Ashok Leyland’s EBITDA margin for the quarter stood at 15%, compared to the estimate of 14.3%, reflecting strong operating leverage and cost control. The company reported an adjusted profit after tax of ₹1,260 crore, which factors in the write-off of intangible assets and impairment losses.
Despite the top-line miss, Morgan Stanley remains confident in the company’s medium-term outlook, underpinned by margin strength and ongoing demand recovery.
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