Should you buy, sell or hold Ashok Leyland shares after auto major's strong Q4 results?

Ashok Leyland’s standalone net profit fell 16.6 per cent on a year-on-year basis to Rs 751.4 crore owing to a high base but exceeded analysts' expectations. Brokerages see an upside of as high as 31 per cent in the auto major's stock.

Most brokerages remain upbeat on Ashok Leyland after the auto major reported a strong set of Q4 results. | Image: Reuters

Ashok Leyland share price: Hinduja group flagship Ashok Leyland's shares lost steam after rising as much as two per cent on Wednesday, a day after the auto manufacturer reported a strong set of quarterly numbers. Most analysts remained positive on the stock after the earnings announcement, with targets implying an upside as high as 31 per cent.

Ashok Leyland Q4 results

After market hours on Tuesday, the commercial vehicles maker reported a standalone net profit of Rs 751.4 crore for the quarter ended March 2023, which marked a fall of 16.6 per cent compared with the corresponding period a year ago owing to a high base but exceeded analysts' estimates.

Its revenue came in at Rs 11,625.7 crore for the three-month period, as against Rs 8,744.3 crore for the year-ago quarter, according to a regulatory filing.

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According to Zee Business research, Ashok Leyland's quarterly net profit was estimated at Rs 670 crore and revenue at Rs 11,760 crore.

Ashok Leyland dividend

Ashok Leyland's board recommended a dividend of Rs 2.6 per share for its shareholders — a 260 per cent payout given the face value of Re 1 per share.

The dividend, subject to approval of shareholders at the company's 74th AGM on July 21, will be paid on or before August 19, 2023, the company said.

Most brokerages remained positive on Ashok Leyland shares after the company's earnings announcement.

Brokerage	Rating	Price Target
JP Morgan	Overweight	Rs 175
Morgan Stanley	Overweight	Rs 178
Jefferies	Buy	Rs 185
Citi	Buy	Rs 200
Nomura	Buy	Rs 184

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