BackAshok Leyland shares an outperformer among auto stocks. ICICI Securities sees more upside in coming months
Ashok Leyland shares at the cusp of breaking above its last six months range, thus offers fresh entry opportunity to ride the next up move, the brokerage said
PremiumAshok Leyland share price has been an outperformer among auto stocks with the stock up nearly 160% in a year from trading around the ₹52 level in August last year to currently trading around ₹133. Ashok Leyland has a well-diversified portfolio across the automobile industry and is among the leading players in India's commercial vehicle (CV) industry.
The shares have already retraced its entire corrective decline and is on the cusp of generating a breakout above its last six months consolidation range ( ₹139-106), thus offering a fresh entry opportunity, Domestic brokerage and research firm ICICI Direct said in a note.
It expects the stock to maintain its current up trend and head towards ₹153 levels in the coming months. It has a stop loss of ₹126 per share. ''The stock, during the current breather, has formed a higher base around 20 week’s EMA (currently around ₹126), which has acted as a strong support since August 2020, signalling strength.''
Ashok Leyland (ALL) is a pure play CV manufacturer with a presence in M&HCV buses and trucks and LCV goods as well.
The brokerage said that the auto space has seen a shallow retracement in the last six months after the strong up move of CY20, signalling resilience and higher base for the next up move.
Another brokerage firm Angel Broking also has a 'Buy' rating on the stock with the target price of ₹158 per share. ''..While demand for the LCV segment has been growing smartly post the pandemic, demand for the MHCV segment has also started to recover over the past few months before the 2nd lockdown. We believe that the company is ideally placed to capture the growth revival in the CV segment and will be the biggest beneficiary of the Government’s voluntary scrappage policy and hence rate the stock a BUY,'' it said.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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