Ashok Leyland - Q1FY2014 Result Preview - Angel Broking

Ashok Leyland (AL) is slated to announce its 1QFY2014 results today. We expect Ashok Leyland's (AL) top-line to register an ~20% yoy decline in net sales to Rs. 2,357cr following an ~21% yoy drop in volumes. On the operating front, we expect EBITDA margins to witness a sharp contraction of ~350bp yoy to 4.5% for the quarter due to adverse product-mix and lower utilization levels. As a result, bottom-line is expected to register a loss of Rs. 74cr.

At Rs. 17, the stock is trading at 7.8x FY2015E earnings. Currently, we have a Buy rating on the stock with a target price of Rs. 27.

Source : Equity Bulls

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