Ashok Leyland Ltd (ALL) 3QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Ashok Leyland Ltd (ALL) 3QFY2016 Results:

"Ashok Leyland Ltd (ALL) 3QFY2016 results were in line with our estimates. Revenues grew 22% YoY to INR 4,085 cr driven largely by 23% YoY growth in the volumes. MHCV segment (constituting 80% of volumes) grew strongly 27% YoY while the LCV segment grew 9% YoY. Realisation per vehicle declined marginally 1% YoY mainly due to slight deterioration in the product mix. ALL operating margins improved 340 bp YoY to 10.5% given the operating leverage due to strong volume growth and soft commodity prices. The margins were slightly lower than our estimates of 11%. ALL EBIDTA at INR 430 cr was in line with our expectations of INR 440 cr. During the quarter, ALL had exceptional loss of INR 6.5 cr (INR 5 cr due to diminution in value of investments in JV/Subsidiary and INR 1.5 cr due to loss on sale of immovable property). Adjusted PAT of INR 205 cr was in line with our estimates of INR 196 cr. We maintain BUY rating on the stock."

Shares of ASHOK LEYLAND LTD. was last trading in BSE at Rs.83.2 as compared to the previous close of Rs. 81.1. The total number of shares traded during the day was 2215482 in over 8915 trades.

The stock hit an intraday high of Rs. 84.6 and intraday low of 80.4. The net turnover during the day was Rs. 182848818.

Source : Equity Bulls

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