 "TVS Motor, Ashok Leyland hit lifetime highs")
TVS Motor Company (Rs 326) and Ashok Leyland (Rs 108) have hit their respective lifetime high on the BSE in early morning trade.
At 09:37 AM, TVS Motor Company was trading 3% higher at Rs 324, extending its 18% rally thus far in March, as compared to 9% rise in the S&P BSE Sensex.
The company had launched its new four strokes TVS XL 100 in Madhya Pradesh, Andhra Pradesh, Telangana and Maharashtra during the current month.
On March 16, the company announced that it has made an arrangement with e-commerce major Snapdeal to sell its two-wheelers online.
Karvy Stock Broking believes that with healthy volumes and improvement in capacity utilization, TVS Motor Company’s margins would expand from current level and its return ratio would improve. Moreover, any big success of new launch from BMW tie up may result in additional value unlocking.
Ashok Leyland was trading higher by 1% at Rs 108, extending its Tuesday’s 2% gain, after the company announced that it has won defence contract worth Rs 800 crore from Indian armed forces for supply of advanced-technology products.
The stock surged 24% thus far in March, after the company reported a 25% growth in total sales during the month of February 2016 at 13,403 units as compared to 10,762 units.
Sharekhan expects Ashok Leyland to maintain a robust growth momentum by reporting industry leading 30% volume growth in March 2016 in the MHCV space. The company to deliver robust Q4 (January-March) results given a sharp 24% overall volume growth (led by 33% growth in the MHCV segment) and consequent operating leverage.
The brokerage house retain ‘buy’ rating on the stock with price target to Rs 120 says that Ashok Leyland’s revenues are expected to grow by a strong 17% compounded annual growth rate (CAGR) over FY2016-18E given the continued robust demand in the MHCV segment and increased supplies to the defence sector.
At 09:37 AM, TVS Motor Company was trading 3% higher at Rs 324, extending its 18% rally thus far in March, as compared to 9% rise in the S&P BSE Sensex.
The company had launched its new four strokes TVS XL 100 in Madhya Pradesh, Andhra Pradesh, Telangana and Maharashtra during the current month.
On March 16, the company announced that it has made an arrangement with e-commerce major Snapdeal to sell its two-wheelers online.
Karvy Stock Broking believes that with healthy volumes and improvement in capacity utilization, TVS Motor Company’s margins would expand from current level and its return ratio would improve. Moreover, any big success of new launch from BMW tie up may result in additional value unlocking.
Ashok Leyland was trading higher by 1% at Rs 108, extending its Tuesday’s 2% gain, after the company announced that it has won defence contract worth Rs 800 crore from Indian armed forces for supply of advanced-technology products.
The stock surged 24% thus far in March, after the company reported a 25% growth in total sales during the month of February 2016 at 13,403 units as compared to 10,762 units.
Sharekhan expects Ashok Leyland to maintain a robust growth momentum by reporting industry leading 30% volume growth in March 2016 in the MHCV space. The company to deliver robust Q4 (January-March) results given a sharp 24% overall volume growth (led by 33% growth in the MHCV segment) and consequent operating leverage.
The brokerage house retain ‘buy’ rating on the stock with price target to Rs 120 says that Ashok Leyland’s revenues are expected to grow by a strong 17% compounded annual growth rate (CAGR) over FY2016-18E given the continued robust demand in the MHCV segment and increased supplies to the defence sector.
