Highlights
- Ashok Leyland reported Q3 net profit of ₹796 crore, up 4.5% year-on-year, despite a ₹308 crore one-time charge.
- Revenue increased 22% to ₹11,534 crore, while EBITDA rose 27% to ₹1,535 crore with margins at 13.3%.
- Brokerages maintain Buy ratings with target prices ranging from ₹215 to ₹245.
Ashok Leyland Ltd (NSE:ASHOKLEY) was trading at ₹211.10 on 12 February at 12:51 pm, up 2.30% for the day. The stock has advanced 92.47% over the past year, 76.83% in six months and 12.88% in the last month. Following its latest quarterly earnings, multiple brokerages have maintained Buy ratings with target prices ranging between ₹215 and ₹245.
Q3 Performance: Profit and Revenue Increase
The commercial vehicle manufacturer reported consolidated net profit of ₹796 crore for the quarter, up 4.5% year-on-year. Profit growth was affected by a one-time charge of ₹308 crore related to the new labour code and higher raw material expenses.
Revenue for the quarter stood at ₹11,534 crore, marking a 22% increase compared to the same period last year.
Quarterly expenses rose 20.1%, primarily due to a 19.2% increase in raw material costs.
EBITDA and Margin Expansion
Ashok Leyland reported EBITDA of ₹1,535 crore, up 27% from ₹1,211 crore in the corresponding quarter of the previous year.
EBITDA margins expanded by 500 basis points year-on-year to 13.3%. The company reported double-digit EBITDA margins for the 12th consecutive quarter, according to its earnings filing.
Volume Growth Across Segments
Wholesale volumes in the medium and heavy commercial vehicle (MHCV) segment increased 23% year-on-year to 32,929 units during Q3.
Light commercial vehicle (LCV) volumes rose 30% to 20,518 units. Export volumes also grew 20% to 4,965 units during the quarter, indicating growth across domestic and international markets.
Brokerages Maintain Buy Ratings
Several brokerage firms have reiterated Buy recommendations on Ashok Leyland following the quarterly update.
Buy Ratings and Target Prices:
- Motilal Oswal Securities Ltd – 1-BUY | Target: ₹238
- Spark Capital Advisors (India) Pvt Ltd – 1-BUY | Target: ₹240
- JM Financial Institutional Securities Ltd – 1-BUY | Target: ₹245
- Undisclosed Brokerage – 1-BUY | Target: ₹230
- Ambit Capital Pvt Ltd – 2-BUY | Target: ₹215
The highest target price among the listed brokerages stands at ₹245, compared to the current market price of ₹211.10.
Share Price Momentum
Ashok Leyland shares have delivered notable gains over multiple timeframes. The stock has risen 92.47% over the past year, 76.83% in six months and 12.88% in the last month.
The stock was up ₹4.75 on the day at the time of reporting.
Ashok Leyland’s latest quarterly performance showed higher revenue, EBITDA growth and volume expansion across MHCV, LCV and export segments. Despite cost pressures and a one-time charge, the company reported profit growth and margin expansion. Brokerage firms continue to assign Buy ratings with target prices above current trading levels of ₹211.10.
Frequently Asked Questions (FAQs)
- What was Ashok Leyland’s Q3 net profit?
The company reported consolidated net profit of ₹796 crore, up 4.5% year-on-year. - What are the latest broker target prices?
Broker target prices range between ₹215 and ₹245, with multiple firms maintaining Buy ratings. - How has the stock performed over the past year?
Ashok Leyland shares have risen 92.47% over the past year and 76.83% over the last six months.