Ashok Leyland's Earnings Margins Likely to Keep Rising — Market Talk
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Ashok Leyland's earnings margins are likely to keep rising, Nomura analysts say in a research report. Management mentioned that price increases and its mix of non-vehicle products have been margin-supportive, and its air-conditioned cabins have had strong traction, the analysts note. Also, players in the medium- and heavy-sized commercial vehicles space like Ashok Leyland pursue pricing discipline, which should help maintain higher margins. Nomura lifts its FY 2025 and FY 2026 EPS forecasts for the Indian automotive manufacturer by roughly 7.8% each. It raises the stock's target price to INR144.00 from INR138.00 with an unchanged buy rating. Shares are 7.5% higher at INR131.10. (ronnie.harui@wsj.com)