After turning profitable in Q4FY21 the share prices of Ashok Leyland added 9% in trade on 25th June. Against a loss of ₹57.3 crores in the year ago, A standalone net profit of ₹241.1 crores in the fourth quarter of financial year 2021 was posted by the company. As compared to the standalone revenue in the year-ago at ₹3,838.5 crores, the revenue was up by 82% at ₹7,000.5 crores. The margin expanded to 7.6% from 4.7% along with the earnings before interest, tax, depreciation, and amortization (EBITDA) were at ₹533.7 crores.
Due to hit by commodity cost inflation, the gross margins declined 580bp to 23.1% as said by Motilal Oswal. The recurring PBT of ₹2.8 billion was led by higher depreciation and interest while the Adjusted loss for FY21 stood at ₹3 billion and adjusted PAT stood at ₹2.1 billion.
According to the brokerage, although the net debt seems stable QoQ yet it was higher by ₹11.5 billion YoY to ₹28.9 billion.
For investments to arrive at SoTP based target price of around ₹143, the brokerage values the core business at 14x FY23E Ev/EBITDA on the improving CV cycle outlook and adds ₹6 per share.
While the share touched a 52 week low of ₹45.25 on 4th June 2020, it touched a 52 week high of ₹1 38.85 on 4th February 2021. It is trading above its 52 week low at 181.33% along with trading at 8.32% below its 52 weeks high. Up with ₹9.10 Ashok Leyland was quoting at ₹127.30 or 7.7% around 10:31 a.m. on the Bombay Stock Exchange (BSE).