Last updated: June 19, 2023, 1:13 PM IST
Ashok Leyland (Photo: IANS)
Shares of Ashok Leyland rose 3.5 percent in early trading on June 19, hitting a 52-week high
Ashok Leyland Price Today: Shares of Ashok Leyland rose 3.5 percent in early trading on June 19 to reach a 52-week high of Rs 170.15 on strong growth prospects. The stock recorded a 52-week high of Rs 170.15 and a low of Rs 128.35. The return on equity for the stock was 14.5 percent. On the counter, approximately 787,851 shares have changed hands so far.
The stock’s beta value, which measures volatility relative to the broader market, was 1.55.
The scrip is an outperformer, up 28.34 percent over the past year compared to a gain of 16.75 percent in Sensex.
At its Investors’ Day event on June 15, the company set a medium-term goal of achieving a 35 percent market share in the medium and heavy commercial vehicle (MHCV) segment, a 25 percent share in the light commercial vehicle segment. commercial vehicles (LCV) and mid-teen EBITDA margin (earnings before interest, taxes, depreciation and amortization). The company’s EBITDA margin was 8.1 percent in FY23.
Aside from that, it also plans to expand its export and defense footprint and build electric vehicles (EV) and alternative powertrains.
What should investors do now?
The company’s massive growth plans have been praised by global research and brokerage firm Jefferies. The company sees strong truck demand, margin improvement and market share recovery as the key upside catalysts for the stock.
Accordingly, Jefferies maintained its ‘buy’ call for Ashok Leyland as it raised its price target by more than 5 percent to Rs 195.
While Jefferies appreciates Ashok Leyland’s aggressive strategy to expand both market share and margins over the medium term, the company believes it may be difficult to achieve both as Tata Motors is also likely to expand its franchise. to defend.
Taking those assumptions into account, Jefferies also kept the stock lower in its pecking order despite raising the price target due to expensive valuations.
Technical
On the technical charts, the 200-day moving average (DMA) of the stock stood at Rs 128.35 on June 19, while the 50-DMA stood at Rs 147.15. If a stock trades well above 50-DMA and 200-DMA, it usually means the immediate trend is up. On the other hand, if the stock trades well below 50-DMA and 200-DMA both, it is considered a bearish trend and trades between these averages, then it suggests that the stock could go either way.
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