Moneycontrol

The last few weeks have been very bad for the market. Equity investors lost more than Rs 20 lakh crore in wealth in just 10 days of selling. But even in this weakness, some stocks shine. A similar stock is Ashok Leyland (Ashok Leyland, Last week, the stock made a golden cross on the daily chart giving a bullish signal. This occurs when a trend indicator like the 50-day moving average moves above a longer-term trend indicator like the 200 DMA. Ashok Leyland is one of the few stocks to have seen this happen in recent weeks.

This Hinduja Group stock has jumped about 3% in the past month. It currently looks up 42% from its 52-week low and is well ahead of its rivals. However, selling has been seen in this stock over the past few days. But this sale was limited.

Most fundamental analysts are bullish on this stock. They think this stock may see a 20-30% increase from the current level. Market experts are confident that strong truck sales and positive medium to long-term triggers will act as a boost for this stock. According to May sales data from this commercial vehicle manufacturer, the company’s sales in May saw a 315% increase on a year-over-year basis. The company’s national truck sales during this period saw the largest increase on record at 386%.

Saji John of Geojit Financial Services “We expect demand to improve due to increased manufacturing and improved retail and e-commerce sales. Relief in steel prices to current levels and better cost management and higher prices will lead to margin expansion. Relief in steel prices to current levels and better cost management and higher prices will lead to margin gains. It has assigned a ‘Buy’ rating to the stock with a target of Rs 162. This means that this stock may see a 22% increase from current levels.

Opportunity in the exceptional sale of Monsoon

A major concern for the analyst is the impact of rising commodity prices, which could put pressure on the company’s margins. However, to offset rising steel prices, Ashok Leyland has raised prices by 6% over the past nine months. At the same time, margins are not expected to decline further due to moderating commodity prices.

Ashwin Patil of LKP Securities He says that given the increase in government spending on infrastructure development, he is confident that in the future there will be good growth in demand for trucks, which will benefit Ashok Leyland. LKP Securities has set a 12-month target of Rs 173 for this stock. Today, the stock closed at Rs 131 with a gain of 0.81% in trading.

But some analysts say the stock’s valuation looks very expensive. So it should be sold. HDFC Securities states that “Ashok Leyland may struggle to make up lost market share in the commercial vehicle segment as consumers shift to medium light commercial vehicles and CNG. The company has traditionally been weak in this segment and is slow to launch CNG variants.

Disclaimer: The opinions expressed on moneycontrol.com are the personal opinions of the experts. The website or the management are not responsible for this. Money Control advises users to consult a certified expert before making any investment decision.

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