Ashok Leyland up 2% despite Kotak Securities cuts target; maintains buy

Kotak Securities has maintained buy rating on the stock but cut target price to Rs 150 from Rs 170 per share.


Shares of Ashok Leyland added 2.5 percent intraday Wednesday despite Kotak Securities slashed target price of the company.

Kotak Securities has maintained buy rating on the stock but cut target price to Rs 150 from Rs 170 per share.

According to firm, the commercial vehicle cycle downturn is transient in nature and growth is likely to come back in FY20.

It cut volume/earnings assumptions by 11-17 percent/13-17 percent over FY19-21 to factor in weakness in demand.


The truck volumes is likely to grow in second half of FY20 due to pre-buying ahead of change in emission norms in April 2020, it added.

At 11:16 hrs Ashok Leyland was quoting at Rs 94.80, up Rs 1.70, or 1.83 percent on the BSE.

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