may 25, 2019 ashok leyland - nalandasecurities.com€¦ · q4fy19 – e may 25, 2019 ashok leyland...
TRANSCRIPT
Q4
FY1
9 –
Re
sult
Up
dat
e
May 25, 2019
Ashok LeylandDownside
Scenario
Current
Price
Price
Target
10511.9%
Upside
Scenario
BUY*
94Volume Performance to remain RobustThe company’s volume performance was subdued, however, was above the industrygrowth. Hence, able to gain market share during the quarter. For the quarter, it hasreported a volume growth of 1.3% YoY to 59,521 units, while for the year it remains robustwith a growth of 12.9% YoY to 1,97,366 units. The company’s LCV turnaround wasspectacular, which supported the volume growth for the year.With stable Government in place, India can see more economic reforms, focus oninfrastructure and the expectation of the announcement of the new scrappage policy, this,along with the pre-buy before the BS6 implementation would lift the volumes higher in thelow double digit in FY20E. We expect some dullness in Q1FY21E volumes post pre-buy,however, the management has already begun working on cost reduction to retain doubledigit margins.
Scrappage Policy Announcement to Boost Volumes in FY21E.We expect a scrappage policy announcement in FY21E, which will offset the CV down cycleimpact. The Government has spoken about it in the past. The details are not available,however, the demand is expected to be robust. Expect with the initiatives taken by GoI,with the introduction of EV, the concerns on the environment, the scrappage policy shouldcome. This will be beneficial for consumers as they get some incentives and for OEMs asvolume demand will be huge. The company doesn’t have any capacity constraints in case ofheavy lifting of demand & the management looks optimistic on this policy.
Focus on Turning Around ExportsThe export volumes for the quarter remains subdued as it reported a de-growth of 11% YoYto 3,115 units in Q4FY19. While for the year, the de-growth was higher at about 24.4% YoYto 12,301 units. This was majorly due to recessionary issues in its major markets and wasnot focused on the left hand drive markets. However, the company has taken strategicsteps to review the exports with the launch of left hand drive vehicles, increasing numberof target countries, expansion of LCVs and by launching newer products. The managementsees a lot of tractions in the African markets and expects the growth to be about 15% inFY20E, however, we have conservatively estimated at ~6.8% in FY20E till we see somedemand improvement in the export markets.
Consistently Maintaining High Double Digit MarginSince the past 15 quarters, the company has been posting double digit EBITDA Margin. Thisis despite of tough market environment, where the discounting levels are extremely high atabout 15% & at sometimes goes up to 20% as well. With the focus on stringent costrationalization efforts, to get operating leverage benefits led by pre-buy and thecommodity prices have turned favourable for the company since the start of FY20E. Hence,we expect margins to improve in the next year.
Attractive ValuationsWe have factored in the CV down cycle play without considering the benefits ofexpectation of scrappage policy and adjusted the margins accordingly. Inspite of this, thevaluations remain very attractive for the company. The company on a forward basis hasbeen trading at 9.1x and we have assigned similar earnings multiple to arrive at a fair valueof Rs. 105. We thus maintain buy by looking at various factors viz. 1) the revived focus onexports, 2) gaining market share in the domestic markets, 3) de-risking business bylaunching LCVs range of vehicles, 4) opportunities in the Defence, 5) reviving economy witha stable government and 6) expectation of the announcement of scrappage policy. All thisshould uplift the overall performance.
Ashok Leyland vs SENSEX
* Read last page for disclaimer & rating rationale
Market Data
Industry Automotive
Sensex 39,435
Nifty 11,844
Eq. Cap. (INR. Crs.) 294
Face Value (INR.) 1
52-w H/L 152/78
Market Cap (INR. Crs.) 27,491
Valuation Data FY19 FY20E FY21E
OPM 10.8% 11.1% 9.5%
NPM 6.8% 6.3% 5.1%
P/E (x) 13.9 13.4 16.9
EV/EBITDA (x) 8.6 7.0 8.0
Shareholding Pattern (%)
Mar-18 Dec-18 Mar-19
Promoters 51.3% 51.1% 51.1%
FII 23.3% 21.9% 19.1%
DII 11.2% 9.2% 10.1%
Others 14.3% 17.8% 19.7%
Total 100% 100% 100%
(INR Crores) FY17 FY18 FY19 FY20E FY21E
Revenue 20,140 26,248 29,055 32,596 32,116
Growth (%) 6.4% 30.3% 10.7% 12.2% -1.5%
EBITDA 2,203 2,739 3,136 3,625 3,057
Growth (%) -2.3% 24.4% 14.5% 15.6% -15.7%
EBITDA Margin (%) 10.9% 10.4% 10.8% 11.1% 9.5%
PAT 1,223 1,563 1,983 2,054 1,630
Growth (%) 213.9% 27.8% 26.9% 3.6% -20.6%
EPS (INR) 4.2 5.3 6.8 7.0 5.6
P/E (x) 20.3 20.3 13.9 13.4 16.9
EV/EBITDA (x) 11.7 11.6 8.6 7.0 8.0
Source: Company, NSPL Research
Institutional Research
Head of ResearchVaibhav Chowdhry vaibhav.chowdhry@ nalandasecurities.com
NALANDA SECURITIES PRIVATE LIMITED310-311 Hubtown Solaris, NS Phadke Marg, Opp Teli Gali, Andheri East, Mumbai 69+91-22-6281-9649 | [email protected] | www.nalandasecurities.com
AnalystAmit Hiranandani amit.hiranandani@ nalandasecurities.com
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Ashok Leyland SENSEX
Ashok Leyland | Q4FY19 - Result Update | Page 2
Q4FY19 Result Analysis
Other Key Highlights1. Ashok Leyland has spent Rs. 950 crores as capital expenditure in FY19 and expects to clock Rs. 1,000-1,500 crores of capex in
FY20E.2. The company is net cash positive at Rs. 715 crores.3. The management expects strong pre-buy in the 2nd and 3rd quarter of FY20, however, we believe the prebuying is going to
happen only in the 4th quarter.4. The company has guided for standard effective tax rate in FY20E.5. Ashok Leyland has been working on the development of electric vehicles and would be successful in rolling out BS6 within
time.6. The spare parts business has grown by ~20% and expect the same run rate to continue in the coming years.7. Hinduja Finance performance was satisfactory as the company has been doing well in all fronts. The book size is about Rs.
26,000 crores with an improvement in the asset quality.8. The search for the new CEO is on and the BoD is engaged on it. The Board has been doing a worldwide search and this process
involves grooming internal candidates as well. The management has not disclosed any timeline for the same.
(INR Crores) Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ (%) FY19 FY18 YoY (%)
Volumes (Nos) 59,521 58,734 1.3% 43,758 36.0% 1,97,366 1,74,873 12.9%
Realization (Rs) 14,86,186 14,94,891 -0.6% 14,45,505 2.8% 14,72,136 15,07,174 -2.3%
Net sales 8,846 8,780 0.7% 6,325 39.9% 29,055 26,356 10.2%
COGS 6,429 6,248 2.9% 4,436 44.9% 20,680 18,431 12.2%
Employee Expenses 573 459 25.0% 500 14.7% 2,099 1,838 14.2%
Other Expenses 858 948 -9.5% 740 15.9% 3,141 3,124 0.5%
EBITDA 985 1,126 -12.5% 650 51.7% 3,136 2,964 5.8%
D&A 160 157 1.5% 161 -0.6% 621 598 3.8%
Other income 9 59 -84.7% 21 -56.3% 110 197 -44.1%
EBIT 835 1,028 -18.8% 510 63.8% 2,625 2,562 2.5%
Interest Expense 17 24 -31.9% 19 -13.4% 70 147 -52.2%
PBT 806 1,006 -19.8% 484 66.8% 2,497 2,386 4.7%
Tax 153 263 -41.5% 103 49.4% 514 668 -23.1%
PAT 653 743 -12.1% 381 71.5% 1,983 1,718 15.5%
EPS in INR 2.2 2.5 -12.6% 1.3 70.8% 6.8 5.9 15.2%
Margin Analysis Q4FY19 Q4FY18 YoY (%) Q3FY19 QoQ (%) FY19 FY18 YoY (%)
Material Expenses % Net Sales 72.7% 71.2% 1.5% 70.1% 2.6% 71.2% 69.9% 1.2%
Gross Margin 27.3% 28.8% -1.5% 29.9% -2.6% 28.8% 30.1% -1.2%
Employee Expenses % Net Sales 6.5% 5.2% 1.3% 7.9% -1.4% 7.2% 7.0% 0.3%
Other Expenses % Net Sales 9.7% 10.8% -1.1% 11.7% -2.0% 10.8% 11.9% -1.0%
EBITDA Margin (%) 11.1% 12.8% -1.7% 10.3% 0.9% 10.8% 11.2% -0.5%
Tax Rate (%) 19.0% 26.1% -7.1% 21.2% -2.2% 20.6% 28.0% -7.4%
PAT Margin (%) 7.4% 8.5% -1.1% 6.0% 1.4% 6.8% 6.5% 0.3%
Head of ResearchVaibhav Chowdhry vaibhav.chowdhry@ nalandasecurities.com
NALANDA SECURITIES PRIVATE LIMITED310-311 Hubtown Solaris, NS Phadke Marg, Opp Teli Gali, Andheri East, Mumbai 69+91-22-6281-9649 | [email protected] | www.nalandasecurities.com
AnalystAmit Hiranandani amit.hiranandani@ nalandasecurities.com
Source: Company, NSPL Research
Ashok Leyland | Q4FY19 - Result Update | Page 3
Volume Projections
Source: Company, NSPL Research
Head of ResearchVaibhav Chowdhry vaibhav.chowdhry@ nalandasecurities.com
NALANDA SECURITIES PRIVATE LIMITED310-311 Hubtown Solaris, NS Phadke Marg, Opp Teli Gali, Andheri East, Mumbai 69+91-22-6281-9649 | [email protected] | www.nalandasecurities.com
AnalystAmit Hiranandani amit.hiranandani@ nalandasecurities.com
Ashok Leyland Volume Projections FY16 FY17 FY18 FY19 FY20E FY21E
Domestic Volumes 1,38,356 1,33,264 1,58,612 1,85,065 2,06,191 1,89,522
YoY Growth (%) -3.7% 19.0% 16.7% 11.4% -8.1%
%tage of total volumes 91.3% 91.9% 90.7% 93.8% 94.0% 93.0%
Export Volumes 13,133 11,802 16,261 12,301 13,137 14,236
YoY Growth (%) -10.1% 37.8% -24.4% 6.8% 8.4%
%tage of total volumes 8.7% 8.1% 9.3% 6.2% 6.0% 7.0%
Total Volumes 1,51,489 1,45,066 1,74,873 1,97,366 2,19,328 2,03,758
YoY Growth (%) -4.2% 20.5% 12.9% 11.1% -7.1%
Realization (INR) 12,50,078 13,88,343 15,00,970 14,72,136 14,86,192 15,76,181
YoY Growth (%) 11.1% 8.1% -1.9% 1.0% 6.1%
Net Revenues 18,937 20,140 26,248 29,055 32,596 32,116
YoY Growth (%) 6.4% 30.3% 10.7% 12.2% -1.5%
7% 31% 32% 25% 21% 22% 24% 27% 27.7% 28.4%
1%
1% 0%
0%1% 0%
1%1% 0.8% 0.9%
66%
49% 46% 54%61%
63%64% 62% 61.6% 60.5%
25% 20% 21% 20% 18% 16% 12% 10% 9.9% 10.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E
%tage of total volume sales
LCVs-Goods Carriers LCVs-Passenger Carriers M&HCVs-Goods Carriers M&HCVs-Passenger Carriers
Ashok Leyland | Q4FY19 - Result Update | Page 4
Source: Company, LME, Cogencis, NSPL Research
Story in Charts
Head of ResearchVaibhav Chowdhry vaibhav.chowdhry@ nalandasecurities.com
NALANDA SECURITIES PRIVATE LIMITED310-311 Hubtown Solaris, NS Phadke Marg, Opp Teli Gali, Andheri East, Mumbai 69+91-22-6281-9649 | [email protected] | www.nalandasecurities.com
AnalystAmit Hiranandani amit.hiranandani@ nalandasecurities.com
8.5
8.5
8.6
8.6
8.8
8.8
8.7
8.8
8.6
8.7
8.6 8.5
8.8
8.6
8.9
8.8
8.7
8.6
8.7
8.8
8.7
8.7 8.8
8.8
8.8
7.9
8.5
8.7
8.7
8.9
9.0
9.1
9.1
9.2
9.2
9.2
10
.0
0.2
0.1 0.1 0.1 0.1 0.1
0.1 0.1
0.0 0.2
0.3
0.5
2.8
2.6 2.5
2.0
1.8
1.6 1.5 1.4
1.4 1.5 1.6
1.9
4.3
4.5 4.0 3.5 3.1 2.8 2.7 2.6 2.5 2.7 2.8
2.9 6
.0
0.0
5.0
10.0
15.0
20.0
Ap
r-16
Jun
-16
Au
g-1
6
Oct
-16
Dec
-16
Feb
-17
Ap
r-1
7
Jun
-17
Au
g-1
7
Oct
-17
Dec
-17
Feb
-18
Ap
r-1
8
Jun
-18
Au
g-1
8
Oct
-18
Dec
-18
Feb
-19
Ap
r-1
9
Ashok Leyland's LCV Market Share (%)
LCVs-Goods Carriers
29.8
27.7
30.1
30.5
31.0
30.9
31.2
31.3
31.6
32.4
32.6
33.1
37.0
32.2
34.3
34.2
33.8
33.5
32.9
32.4
33.2
33.5
33.6
33.8
27.2
27.8
28.8
30.2
31.5
31.8
31.3
31.5
31.6
32.4
32.8
32.9
34.4
38
.4
35
.5
36
.0
35
.9
37
.3
37
.8
37
.6
38
.4
38
.2
38
.4
38
.5
37
.5
36
.0
34
.2
36
.4
35
.9
36
.8
37
.3
37
.7
37
.7
38
.0
38
.0
38
.0
38
.5
44
.8
42
.2
40.7
41
.6
41
.8
41
.3
41
.2
40
.3
40
.8
41
.5
41
.7
41
.2 48
.7
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Ap
r-16
Jun
-16
Au
g-16
Oct
-16
Dec
-16
Feb
-17
Ap
r-17
Jun
-17
Au
g-17
Oct
-17
Dec
-17
Feb
-18
Ap
r-18
Jun
-18
Au
g-18
Oct
-18
Dec
-18
Feb
-19
Ap
r-19
Ashok Leyland's MHCV Market Share (%)
M&HCVs-Goods Carriers M&HCVs-Passenger Carriers
10.6
%
-10.
5%
-21.
7%
8.2%
-8.6
%
22.6
%
42.1
%
23.3
%
47.8
%
26.8
%
-6.2
%
1.3%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Q1
FY1
7
Q2
FY1
7
Q3
FY1
7
Q4
FY1
7
Q1
FY1
8
Q2
FY1
8
Q3
FY1
8
Q4
FY1
8
Q1
FY1
9
Q2
FY1
9
Q3
FY1
9
Q4
FY1
9
Ashok Leyland's Volume Growth
Volumes (No) Volume Growth YoY (%)
0.0%
31.5
%
59.2
%
32.0
% 46.8
%
25.4
%
-12.
0% 0.7%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
01,0002,0003,0004,0005,0006,0007,0008,0009,000
10,000
Q1
FY1
8
Q2
FY1
8
Q3
FY1
8
Q4
FY1
8
Q1
FY1
9
Q2
FY1
9
Q3
FY1
9
Q4
FY1
9
Topline Performance
Revenue Revenue Growth YoY (%)
-7.6
%
9.3%
7.2
%
12.1
%
7.0%
-0.7
%
-1.1
%
-6.2
%
-0.6
%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
13,00,000
13,50,000
14,00,000
14,50,000
15,00,000
15,50,000
16,00,000
Q4
FY1
7
Q1
FY1
8
Q2
FY1
8
Q3
FY1
8
Q4
FY1
8
Q1
FY1
9
Q2
FY1
9
Q3
FY1
9
Q4
FY1
9
Realization Trend
Realization (Rs) Realization Growth YoY (%)
9.8%
8.5% 8.9
%
5.7
%
8.9%
4.0%
7.0%
9.1%
12.8
%
7.8
% 8.7%
7.4
%
11.
1%
3.0%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
0
200
400
600
800
1,000
1,200
Q4
FY1
6
Q1
FY1
7
Q2
FY1
7
Q3
FY1
7
Q4
FY1
7
Q1
FY1
8
Q2
FY1
8
Q3
FY1
8
Q4
FY1
8
Q1
FY1
9
Q2
FY1
9
Q3
FY1
9
Q4
FY1
9
EBITDA Margin Performance
EBITDA EBITDA Margin (%)
Ashok Leyland | Q4FY19 - Result Update | Page 5
Profit & Loss (INR Crores) FY17 FY18 FY19 FY20E FY21E
Net sales 20,140 26,248 29,055 32,596 32,116
COGS 13,973 18,621 20,680 23,127 23,204
Employee Expenses 1,480 1,812 2,099 2,357 2,500
Other Expenses 2,484 3,076 3,141 3,487 3,355
EBITDA 2,203 2,739 3,136 3,625 3,057
D&A 518 555 621 713 768
Other income 136 190 110 123 122
EBIT 1,685 2,184 2,515 2,912 2,289
Interest Expense 155 131 70 56 45
PBT 1,330 2,231 2,497 2,977 2,363
Tax 107 668 514 923 732
PAT 1,223 1,563 1,983 2,054 1,630
EPS in INR 4.2 5.3 6.8 7.0 5.6
Balance Sheet (INR Crores) FY17 FY18 FY19 FY20E FY21E
Share Capital 285 293 294 294 294
Net Worth 6,126 7,165 8,332 9,446 10,329
Financial Liabilities 1,194 417 333 305 251
Provisions 133 255 250 279 278
Deferred Tax Liabilities (net) 127 298 250 449 356
Other Non-current Liabilities 39 204 271 304 299
Total Non Current Liabilities 1,492 1,174 1,103 1,336 1,184
Financial Liabilities 5,289 6,407 6,719 7,220 7,155
Other Current Liabilities 614 1,213 1,267 1,421 1,407
Provisions 518 616 803 893 838
Current tax liabilities (net) 0 12 0 0 0
Total Current Liabilities 6,422 8,247 8,789 9,534 9,401
Total Equity and Liabilities 14,040 16,586 18,224 20,316 20,914
Property, Plant and Equipment 4,656 4,688 4,806 5,180 5,106
Capital Work-in-Progress 158 213 275 296 292
Intangibles 363 475 1,192 328 274
Financial Assets 2,184 2,805 2,710 3,041 2,991
Advance tax assets (net) 111 60 102 184 146
Other Non-Current Assets 468 475 954 1,028 1,013
Total Non-Current Assets 7,940 8,716 10,038 10,058 9,823
Inventories 2,631 1,710 2,685 3,002 3,012
Investments 877 3,055 0 0 0
Trade Receivables 1,064 980 2,506 2,811 2,769
Cash and Bank Balances 912 1,004 1,394 2,624 3,519
Loans 21 24 22 26 22
Other Current Assets 471 1,096 1,600 1,795 1,769
Total Current Assets 5,977 7,870 8,186 10,258 11,091
Total Assets 14,040 16,586 18,224 20,316 20,914
Source: Company, NSPL Research
Head of ResearchVaibhav Chowdhry vaibhav.chowdhry@ nalandasecurities.com
NALANDA SECURITIES PRIVATE LIMITED310-311 Hubtown Solaris, NS Phadke Marg, Opp Teli Gali, Andheri East, Mumbai 69+91-22-6281-9649 | [email protected] | www.nalandasecurities.com
AnalystAmit Hiranandani amit.hiranandani@ nalandasecurities.com
Ashok Leyland | Q4FY19 - Result Update | Page 6
Cash Flow (INR Crores) FY17 FY18 FY19 FY20E FY21E
Profit for the Year 1,223 1,563 1,983 2,054 1,630
Operating Profit before Changes in Working Capital 2,325 2,871 3,132 3,682 3,113
Cash Generated from Operations 2,502 5,833 183 3,741 3,015
Less: Direct Taxes Paid -348 -415 -514 -923 -732
Net Cash Flow from Operating Activities 2,155 5,418 -330 2,819 2,282
(Increase)/ Decrease in PP&E -378 -537 -1,518 -155 -636
Free Cash Flows 1,777 4,881 -1,848 2,663 1,646
Net Cash Flow from Investing Activities -1,477 -3,332 1,706 -412 -529
(Decrease)/Increase in Debt
Finance Costs -164 -146 -70 -56 -45
Dividend Paid (including DDT) -325 -549 -812 -1,037 -747
Net Cash Flow from Financing Activities -1,372 -1,961 -984 -1,176 -858
Net Increase/(decrease) in cash and cash equivalents -694 125 391 1,230 895
Cash at the Start of the Year 1,563 869 994 1,385 2,615
Cash at the End of the Year 869 994 1,385 2,615 3,510
RATIOS FY17 FY18 FY19 FY20E FY21E
Profitability
RoE (%) 20.0% 21.8% 23.8% 21.7% 15.8%
RoCE (%) 20.4% 26.7% 27.5% 28.9% 21.1%
Margin Trend
EBITDA Margin (%) 10.9% 10.4% 10.8% 11.1% 9.5%
Net Profit Margin (%) 6.1% 6.0% 6.8% 6.3% 5.1%
Solvency
D/E (x) 0.4 0.1 0.1 0.1 0.0
Net D/E (x) 0.2 0.0 -0.1 -0.2 -0.3
Valuation Ratios
P/E 20.3 20.3 13.9 13.4 16.9
EV/EBITDA 11.7 11.6 8.6 7.0 8.0
P/B 4.0 4.4 3.3 2.9 2.7
Source: Company, NSPL ResearchFY17 & FY18 financials is taken from annual report FY18.
Head of ResearchVaibhav Chowdhry vaibhav.chowdhry@ nalandasecurities.com
NALANDA SECURITIES PRIVATE LIMITED310-311 Hubtown Solaris, NS Phadke Marg, Opp Teli Gali, Andheri East, Mumbai 69+91-22-6281-9649 | [email protected] | www.nalandasecurities.com
AnalystAmit Hiranandani amit.hiranandani@ nalandasecurities.com
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Disclaimer:This report has been prepared by Nalanda Securities Pvt. Ltd(“NSPL”) and published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of India(Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for circulation or public distribution. NSPL includes subsidiaries, group and associatecompanies, promoters, directors, employees and affiliates. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available toothers, in any form, in whole or in part, for any purpose without prior written permission from NSPL. The projections and the forecasts described in this report are based upon anumber of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and itcan be expected that one or more of the estimates on which the projections are forecasts were based will not materialize or will vary significantly from actual results and suchvariations will likely increase over the period of time. All the projections and forecasts described in this report have been prepared solely by authors of this report independently.None of the forecasts were prepared with a view towards compliance with published guidelines or generally accepted accounting principles.This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything containedtherein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into accountthe particular investment objective, financial situation or needs of individual clients. The research analysts of NSPL have adhered to the code of conduct under Regulation 24 (2) ofthe Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their owninvestment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particularcircumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. NSPL does not take any responsibility thereof. Any such recipient shall beresponsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved insecurities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investorsmay realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.Except for the historical information contained herein, statements in this report, which contain words such as ‘will’, ‘would’, etc., and similar expressions or variations of such wordsmay constitute ‘forward‐looking statements’. These forward‐looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differmaterially from those suggested by the forward‐looking statements. Forward‐looking statements are not predictions and may be subject to change without notice. NSPL undertakesno obligation to update forward‐looking statements to reflect events or circumstances after the date thereof. NSPL accepts no liabilities for any loss or damage of any kind arising outof use of this report.This report has been prepared by NSPL based upon the information available in the public domain and other public sources believed to be reliable. Though utmost care has beentaken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by NSPL that such information is accurate or complete and/or isindependently verified. The contents of this report represent the assumptions and projections of NSPL and NSPL does not guarantee the accuracy or reliability of any projection,assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable orappropriate to recipients’ specific circumstances. This report is based / focused on fundamentals of the Company and forward‐looking statements as such, may not match with areport on a company’s technical analysis report. This report may not be followed by any specific event update/ follow‐up.
Following table contains the disclosure of interest in order to adhere to utmost transparency in the matter;
Disclosure of Interest Statement
Details of Nalanda Securities Pvt. Limited (NSPL)
• NSPL is a Stock Broker registered with BSE, NSE and MCX ‐ SX in all the major
segments viz. Cash, F & O and CDS segments. Further, NSPL is a Registered
Portfolio Manager and is registered with SEBI
• SEBI Registration Number: INH000004617
Details of Disciplinary History of NSPL No disciplinary action is / was running / initiated against NSPL
Research analyst or NSPL or its relatives'/associates' financial interest in
the subject company and nature of such financial interest
No (except to the extent of shares held by Research analyst or NSPL or its
relatives'/associates')
Whether Research analyst or NSPL or its relatives'/associates' is holding
the securities of the subject companyNO
Research analyst or NSPL or its relatives'/associates' actual/beneficial
ownership of 1% or more in securities of the subject company, at the
end of the month immediately preceding the date of publication of the
document
NO
Research analyst or NSPL or its relatives'/associates' any other material
conflict of interest at the time of publication of the documentNO
Has research analyst or NSPL or its associates received any compensation
from the subject company in the past 12 monthsNO
Has research analyst or NSPL or its associates managed or co‐managed
public offering of securities for the subject company in the past 12 monthNO
Has research analyst or NSPL or its associates received any compensation
for investment banking or merchant banking or brokerage services from
the subject company in the past 12 months
NO
Has research analyst or NSPL or its associates received any compensation
for products or services other than investment banking or merchant
banking or brokerage services from the subject company in the past 12
months
NO
Has research analyst or NSPL or its associates received any compensation
or other benefits from the subject company or third party in connection
with the document.
NO
Has research analyst served as an officer, director or employee of the
subject companyNO
Has research analyst or NSPL engaged in market making activity for the
subject companyNO
Other disclosures NO
Rating Legend
Strong Buy More than 15%
Buy 5% - 15%
Hold 0 – 5%
Reduce -5% - 0
Sell Less than -5%
Ashok Leyland
Date CMP (INR) Target Price (INR) Recommendation
May 25, 2019 94 105 Buy
Ashok Leyland | Q4FY19 - Result Update | Page 8
Head of ResearchVaibhav Chowdhry vaibhav.chowdhry@ nalandasecurities.com
NALANDA SECURITIES PRIVATE LIMITED310-311 Hubtown Solaris, NS Phadke Marg, Opp Teli Gali, Andheri East, Mumbai 69+91-22-6281-9649 | [email protected] | www.nalandasecurities.com
AnalystAmit Hiranandani amit.hiranandani@ nalandasecurities.com