Buy Ashok Leyland Ltd For Target Rs.210 - Motilal Oswal Financial Services
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Wholesales up 9% YoY at 19.2k units (in line)
M&HCV sales grew 13% YoY and LCV sales grew 3% YoY ? Wholesale volumes grew 9% YoY
* M&HCV volumes increased by 13% YoY to 12.75k units (est. 12.2k units), lower than 30% volume growth in TTMT.
* LCV volumes grew 3% YoY to 6.45k units (est. 6.2k units).
* We expect MHCV volumes to grow by ~11% in FY24, implying a monthly run rate of ~13.25k units or 11.5% residual growth. LCV volumes are expected to grow 6% YoY, implying a monthly run rate of 6.6k units or 9% residual growth.
* The stock trades at 8.8x FY25E EV/EBITDA and 3.8x FY25E P/BV. Maintain Buy
