- 23 May 2023
- ICICI Securities
Ashok Leyland Q4 Results 2023: Healthy performance
Ashok Leyland Ltd | CMP: 235 | Market Cap: 68,862.74
Ashok Leyland (ALL) reported healthy performance in Q4FY23 with EBITDA margins coming at a recent high of 11%, highest among its peers.
Q4FY23 Earnings Summary
View: Ashok Leyland (ALL) is a pure-play CV manufacturer domestically, with FY23 market share pegged at 18.8%, up 240 bps YoY. We continue to remain positive on company amid cyclical recovery underway in the domestic commercial vehicle space tracking greater infrastructure spend by the government. Further company stands to benefit from limited discounts across industry supporting double digit margins going forward. ALL is also focusing on alternate fuel technology (capabilities showcased in Auto Expo 2023) & is expanding in EV space through its investment in Switch Mobility. Key monitorable going forward would be management commentary on demand front, margin trajectory as well as value unlocking through fund raising on Switch Mobility front.
Impact: Positive