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Monday, December 23, 2024 | 07:18 PM ISTEN Hindi

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Ashok Leyland well poised to drive up market share, margins

Despite near-term disappointment due to muted Q1, multiple drivers will help company outpace rivals

Ashok Leyland
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Despite the poor performance, most brokerages have a positive view on Ashok Leyland

Ram Prasad Sahu Mumbai
On a day when the broader markets were up, Ashok Leyland fell 2.5 per cent to Rs 103. The negative reaction was due to a muted performance in the June quarter (Q1), especially on the margin front. But, the bad news ends there, with analysts expecting the stock to deliver strong gains on the back of improving prospects for the company.

Revenues were flat with an eight per cent drop in overall volumes set off by higher prices on account of BS-IV models. A weaker product mix coupled with higher employee costs led to margins falling over 3.6 percentage points,

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