Ashok Leyland Ltd - Q3FY12 Result Update - Emkay

Reco: HOLD
CMP: Rs 27
Target Price: Rs 29

Changing product mix to impact margins

- Results significantly below est. with Adj. EBIDTA at Rs 2.4bn (est.-Rs 2.9bn), APAT at Rs 979mn (est-Rs1.1bn)

- Mgmt. expects industry growth at ~4-6% in FY13 with AL market share at ~25%. We factor in ~9% YoY for AL in FY13

- Factor in Nissan LCV vols at 6,300/28,000 units in FY12/13. Lower EPS by 2.9%/2.7% in FY12/13 due to lower margins

- Retain HOLD rating and lower our TP to Rs 29 (10x FY13 PER)

Source : Equity Bulls

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