Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Ashok Leyland Shares Drop 4% After Q3 Results Even as Brokerages Remain Hopeful

Ashok Leyland shares touched an intra-day low of Rs 77.90 apiece on Thursday but later pared losses to trade at Rs 80.30, down 1.3%, as brokerages remained positive on the outlook of the company.

Trending Desk

Updated:February 13, 2020, 1:09 PM IST
facebookTwitter Pocket whatsapp
Ashok Leyland Shares Drop 4% After Q3 Results Even as Brokerages Remain Hopeful
Image For Representation . (News18)

Ashok Leyland Ltd shares dropped over 4% in intraday trade on Thursday after the commercial vehicle manufacturer reported a whopping 92.7% decline in standalone profit for the December quarter (Q3) at Rs 27.7 crore compared with Rs 380.8 crore in the year-ago quarter.

The earning of the flagship firm of the Hinduja Group were mainly hit by lower sales. Revenue during the December quarter declined 36.5% year-on-year to Rs 4,015.60 crore as volumes dropped 28.7%. “The M&HCV (medium and heavy commercial vehicles) sector continued to witness a decline in volume of 39%. Ashok Leyland also witnessed a volume drop this quarter,” said MD and CEO Vipin Sondhi.

Ashok Leyland shares touched an intra-day low of Rs 77.90 apiece on Thursday but later pared losses to trade at Rs 80.30, down 1.3%, as brokerages remained positive on the outlook of the company.

Global brokerage firm Morgan Stanley maintained its ‘Overweight’ rating on the stock with a target price of Rs 111 per share. Despite a tough demand environment, the company maintained good cost discipline, it said, adding that Ashok Leylannd’s reported earnings were in-line with estimates as the demand environment remained subdued.

Nomura also reaffirmed its ‘Buy’ rating on the stock with a target of Rs 97 after the earnings announcement. The brokerage firm said it maintains its view of a 15%/25% industry recovery in FY21/22 and expects margin to revive as the volume growth trajectory picks up in FY21. The valuations are not expensive at current levels, Nomura added.

Credit Suisse, meanwhile, was ‘Neutral’ on the Ashok Leyland stock with a target price of Rs 75 per share. The margin miss has driven a weak quarter, said the brokerage firm. The staff costs dropped sharply, and it should normalise in subsequent quarters, it added.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
IRCTC 1,830.65 11.67
UPL 584.35 -0.20
Vodafone Idea 4.19 38.28
Aurobindo Pharm 602.25 20.40
Tata Motors 158.05 -2.20
Top Gainers
Company Price Change %Gain
HUL 2,293.50 2.71
Bajaj Finance 4,877.00 2.61
Reliance 1,504.20 2.60
ONGC 101.70 2.47
HDFC 2,377.40 2.34
Top Losers
Company Price Change %Gain
Tata Motors 158.05 -2.20
Sun Pharma 403.25 -1.33
TCS 2,194.60 -0.93
Bharti Airtel 543.35 -0.80
Larsen 1,281.40 -0.38

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results