Ashok Leyland Reports Strong Q4 Results, Analysts Maintain Positive Views

Ashok Leyland’s shares saw a 3% gain as analysts uphold their bullish outlook following the company’s Q4 results announcement. The Commercial Vehicle (CV) manufacturer posted a net profit of ₹933.69 crore, a growth of 16.73% from the previous year’s ₹800 crore, driven by robust demand.

The Hinduja Group’s major company reported consolidated revenue from operations of ₹13,577.58 crore in Q4FY24 as compared to ₹13,202.55 crore year-on-year. This performance was across all business segments, with market leader status achieved in the M&HCV Bus segment.

Chairman Dheeraj Hinduja expressed optimism about industry prospects in the near term backed by expected robust growth in the Indian economy.

Motilal Oswal foresees CV demand recovery from the second half of FY25 onwards due to the persistence of structural demand drivers. They view Ashok Leyland as the best investment choice in the CV growth cycle, positioning itself for revenue/profit pool expansion.

Antique Stock Broking expects post-election demand momentum to pick up with better macro conditions and a potential cut in interest rates, aiding volume growth and profitability focus.

Emkay Global Financial Services upgraded Ashok Leyland shares to ‘Buy’ from ‘Sell’ with a target price of ₹250 per share, emphasizing potential upcycle from FY26 onwards. They anticipate a positive shift in the CV cycle from FY26.

Nuvama Institutional Equities increased its EBITDA estimates for FY25 and FY26, citing better pricing and margins. They predict a subdued volume performance in FY25 but maintained a ‘Reduce’ call on Ashok Leyland shares.

At the BSE, Ashok Leyland shares were trading 1.31% higher at ₹213.30 apiece as of 10:00 am.