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Ashok Leyland (AL) reported total dispatches of 7.7k units for the month of January against our expectations of 7.5k units. While MHCV Truck segment dispatches were inline with estimates, bus segment numbers were below expectation. Domestic sales were lower by 8% to 6.8k units. Truck dispatches were lower 10.8% YoY to 5,154 units. Bus segment dispatches were higher by 4.7% YoY to 1,676 units. Exports markets dispatches almost doubled to 831 units with buses contributing half. We expect a similar run-rate of ~8k units to be maintained in the month of Feb'11

Tata Motors dispatches for the month of January 2010 were better than our estimates due to strong performance of the passenger car division. However, sales mix was poor due to higher proportion coming from low profit cars division. MHCV segment grew by 10% to 16.5K units while LCV sales were up by 17% to 24k units.

Passenger cars sales were up by 13% to 26k units with `Nano' sales growing by 68% to 6,703 units. Indigo dispatches were higher by 17% at 8,456 units. Indica dispatches improved significantly on a sequential basis to 10,591 units.

Hero Honda (HH) dispatches for the month of Jan'11 were above estimates with total dispatches of 467k units as against our estimate of 444k units. Dispatches during the month were higher by 19.7% on a YoY basis. However, on a MoM basis dispatches were lower by 6.9%.

We maintain a `HOLD' rating on the stock with a price target of Rs1,699 discounting FY12E earnings 16x.