Recently, Sharekhan released their latest Alpha Delivery Pick and posted an in-depth write-up on ASHOK LEYLAND Share Price Analysis. In this post, we will discuss the fundamental rationale behind the stock and the company’s performance in the past year.
Fundamental Rationale:
Ashok Leyland (ALL) is one of the few pure-play major business vehicle makers in the Republic of India, with an overall market share of ~33% within the M&HCV segment. The management has highlighted plenty of product initiatives that are under place within the section and will unravel as an honest chance within the years to come.
Recent Performance of Ashok Leyland Share Price:
Ashok Leyland’s (ALL) operative performance in Q3FY017 was impacted by evaluation pressure as a result of the government’s demonetization move. The company’s topline grew by 8% YoY to Rs 4,431 crores. This is due to a 7% YoY growth in volumes, whereas the realization was flat. Higher discounting as a result of volume retardation and also the hardening of input prices resulted in the operative margin of profit (OPM) getting by 60BPS YoY to 10.3%.
Demonetization Impact:
The demonetization move hit the Commercial Vehicle (CV) trade volumes in Nov and Dec, with the trade sales dropping by 13% YoY. ALL’s volumes declined by 4% YoY throughout the same period of last year. At present, matters have improved significantly, because the tight liquidity state of affairs has been mitigated, and also the pressure on fleet operators’ capital has subsided.
New Emission Norms:
Secondly, the new BS-IV emission norms would be enforced from April 1st, 2017, on a pan-India basis. Also, the new Cab Code, which makes AC obligatory in CVs, is predicted to come back going forward. Consequently, the truck valuations are set to rise by around 7%-8% from the present levels. This is likely to lead to a major amount of pre-buying. We also expect ALL’s Q4FY2017 volumes to grow by 16% YoY.
Sharekhan Alpha Delivery Pick:
Sharekhan’s Alpha Delivery Pick report provides a positive outlook on the stock. They cited the company’s market dominance and product initiatives as key factors that will help the company weather the current industry challenges. The report believes that ALL is well to take advantage of the opportunities in the sector. This is due to the government’s focus on infrastructure development and the upcoming emission norms.
FAQs on Ashok Leyland Share Price
To buy Ashok Leyland shares, you need to follow these steps:
Firstly, open a Demat account with a stockbroker of your choice.
Secondly, link your bank account with the Demat account.
Thirdly, log in to the Demat account and search for Ashok Leyland shares.
Fourthly, place an order to buy the desired quantity of shares at the current market price or a limit price of your choice.
Lastly, confirm the order and make the payment.
You can buy Ashok Leyland shares through various stockbrokers, such as Sharekhan, Angel Broking, ICICI Direct, HDFC Securities, and more.
The share price of Ashok Leyland keeps changing based on market conditions and various other factors. You can check the current share price of Ashok Leyland on the websites of stockbrokers, stock exchanges, financial news portals, and other similar sources.
As of the 11th of April 2017, the share price of Ashok Leyland is Rs 82.40. However, please note that the share price is subject to fluctuations and may change frequently. Before buying a stock, it’s important to do a lot of study and analysis.
Conclusion:
In conclusion, ASHOK LEYLAND Share Price Analysis shows that the company’s recent performance was impacted by external factors like demonetization. But the management’s product initiatives and market dominance provide a positive outlook for the future. With the industry expected to benefit from the government’s focus on infrastructure development and the upcoming emission norms, ALL is well-positioned to capitalize on the opportunities in the sector.
