Views on Ashok Leyland Ltd 1QFY2016 Results - Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Ashok Leyland Ltd 1QFY2016 Results:

"Ashok Leyland Ltd (ALL) 1QFY2016 results were ahead of our as well as consensus estimates on account of a robust operating performance. ALL reported a double digit margin of 10.1% which is comparable to 4QFY2015 levels, despite the sequentially lower volumes. The margins were clearly better than our estimates of 8.5%. Benefits of subdued raw material prices coupled with lower employee expenses led to the margin outperformance. Also, lower interest expenses due to a reduction in the debt further boosted profitability. Consequently, Net profit at INR 159 cr was ahead of our estimates. We currently have Neutral rating on the stock but would understand the margin sustainability from the management for reviewing our estimates."

Shares of ASHOK LEYLAND LTD. was last trading in BSE at Rs.88.25 as compared to the previous close of Rs. 86.9. The total number of shares traded during the day was 4400170 in over 15552 trades.

The stock hit an intraday high of Rs. 90 and intraday low of 84.15. The net turnover during the day was Rs. 384227759.

Source : Equity Bulls

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