Margin expansion led by RM cost savings

11 Mar 2024
5 Min read 
  • Ashok Leyland's 3QFY24 results beat expectations, with margin expansion driven by cost savings.
  •  CV volume growth is expected to moderate in 4QFY24 and 1QFY25.
  •  FY24E/FY25E EPS estimates have been cut by 6% each due to demand moderation.
  •  The company has a focus on profitable growth and expanding market share.
  •  Valuations at 17.5x FY25E P/E and 10.7x EV/EBITDA do not fully reflect the company's focus on diversifying revenue streams.
  •  Reiterate BUY rating with a TP of INR205.
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