The stock of commercial vehicle (CV) company Ashok Leyland is up 46 per cent in the past three months, gaining despite worries about a slowdown in sales volume. Brokerages have a mixed view on the country's second-largest medium and heavy commercial vehicle manufacturer.
The company reported steady March quarter results and its valuation, focus on growth and medium-term prospects are positive, but some brokerages are cautious, given near-term demand concerns and the risk of competition increasing in the industry.
In the March quarter, the company improved realisations by 2 per cent sequentially on the back of lower discounts and a better product mix. Gross margin improved 380 basis points year-on-year (Y-oY) on improved price realisation, cost reduction, and lower raw material costs. Lower commodity prices, cost control, and better pricing should support margins going ahead.
This story is from the June 22, 2024 edition of Business Standard.
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This story is from the June 22, 2024 edition of Business Standard.
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