Pick of the Week-ASHOK LEYLAND LTD.

1. ASHOK LEYLAND LTD.
 Ashok Leyland is an Indian automobile manufacturing company based in Chennai, India. Founded in 1948, it is the
2nd largest commercial vehicle manufacturer in India, 4th largest manufacturer of buses in the world and 16th
largest manufacturer of trucks globally. Operating six plants, Ashok Leyland also makes spare parts and engines for
industrial and marine applications. It sells about 60,000 vehicles and about 7,000 engines annually. It is the second
largest commercial vehicle company in India in the medium and heavy commercial vehicle (M&HCV) segment with
a market share.
 With passenger transportation options ranging from 19 seaters to 80 seaters, Ashok Leyland is a market leader in
the bus segment. The company claims to carry more than 60 million passengers a day, more people than the entire
Indian rail network. In the trucks segment Ashok Leyland primarily concentrates on the 16 ton to 25 ton range of
trucks. However Ashok Leyland has presence in the entire truck range starting from 7.5 tons to 49 tons. With a
joint venture with Nissan Motors of Japan the company made its presence in the Light Commercial Vehicle (LCV)
segment (<7.5 tons).
 Selling 89,342 medium and heavy vehicles in 2013-14, Ashok Leyland is India's largest exporter of medium and
heavy duty trucks. It is also one of the largest private sector employers in India - with about 12,000 employees
working in 6 factories and offices spread over the length and breadth of India.
 The company has increased its rated capacity to 105,000 vehicles per annum. Further investment plans include
putting up two new plants - one in Uttarakhand in North India and a bus body building unit in middle-east Asia. It
already has a sizeable presence in African countries like Nigeria, Ghana, Egypt and South Africa.
 Technical Outlook
 On daily chart, the stock has been trading in a Broadening Rising Wedge Pattern since last one year. Moreover,
recently stock has taken support of lower band of Broadening Wedge Pattern and has given a good bounce back
with bustle volume activity.
 Moreover, stock has formed Piercing candlestick pattern near the support of lower band, which is a Bullish reversal
sign and indicating for upside movement that can be seen in few trading sessions.
 Apart from this, stock has given close above its 21 Day Moving Average which shows that short term trend is up on
weekly basis and could further accelerate its upside movement from the present level.
 Stock has taken support at 85.95 level which is 38.20% Fibonacci retracement level of its recent bull run from 63.95
to 99.60 level, which shows that stock might move towards its upside level.
 A Momentum Oscillator RSI has given good bounce back from its support line as shown in chart and reading is at 48
level with positive crossover, which point out for positive breath in the stock.
Company ASHOKLEY
Recommendation Buy
Sector : Auto-Trucks/Lcv
CMP : 89 & Upto 87.50
Price Potential : 102
Stop Loss (Closing Basis): 83
Mkt Cap (Rs. Cr.): 25,513
TTM EPS (Rs.) 2.49
TTM Sales (Rs. Cr.) 16,380
BVPS (Rs.) 15.91
Reserves (Rs. Cr.) 4,244
P/BV 5.63
PE 36.03
Bloomberg Code : AL:IN
Reuters Code : ASOK.NS
TW = Twelve Months
TTM= Trailing 12 months
SEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Pick of the Week: ASHOK LEYLAND LTD.
19th Dec, 2015
www.choiceindia.com *Please Refer Disclaimer on Website

2. Pick of the Week: ASHOK LEYLAND LTD.
19th Dec, 2015
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual FundsSEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
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Date: 2015.12.19 16:07:57 +05'30'