Buy Ashok Leyland With Target Of Rs 76

Buy Ashok Leyland With Target Of Rs 76PINC Research has maintained 'buy' rating on Ashok Leyland Limited with a price target of Rs 76 in its report dated January 17, 2011.

Today, the stock of the company opened at Rs 59.70 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 81.90 and a low of Rs 46.80 on BSE.

Current EPS & P/E ratio stood at 4.65 and 12.86 respectively.

Ashok Leyland has registered an increase of 23.86% in its commercial vehicle sales, which remained at 7,568 units during the last month as against the corresponding period of 2009.

Hinduja Group flagship firm had sold 6,110 units in December 2009.

The domestic sales of the company surged 15.87% to 6,411 units in Dec 2010 from 5,533 units in Dec 2009.

Exports rose by more than twofold to 1,157 units during December 2010 as against 577 units in December 2009.

The company said that its production is projected to be built up to 10k units by the fourth quarter of this fiscal as against the YTD number of 5K units.

The compay's FY11 and FY12 earnings projections remained at Rs 4.3 and Rs 5.5 respectively. Their FY12E earnings are 10% below consensus estimation of Rs 6.1.