Multiple growth triggers for Ashok Leyland

Volume recovery, new products and network reach should aid in CV market share gain; defence another focus area

Ashok Leyland has gained 20 per cent on the bourses over the past month on expectations of a recovery in volume growth in the second half of the current financial year and additional market share gains in the commercial vehicle (CV) space.

It is also taking other steps to help propel growth rates. After having gained 11 percentage points in market share in the medium and heavy CV (M&HCV) space over the past five years, it is expected to add a further 100-200 basis points (bps) over FY17-19.

IDFC Securities believes the company will expand market share by an incremental