Ashok Leyland reported a 157% year-over-year growth in net sales for the first quarter of fiscal year 2011, driven by a 178% increase in vehicle volumes. However, operating profit margins of 10% were lower than expected due to lower growth in other business segments like engines and spare parts. Net profit jumped substantially to Rs. 123 crore compared to Rs. 7.8 crore in the prior year quarter, benefiting from higher sales volume and improved operating leverage. While volumes and sales grew strongly, margins were lower than estimates due to higher raw material costs and lower contribution from other business segments.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Webinar Exploring DORA for Fintechs - Simont Braun
Ashoke Leyland
1. 1QFY2011 Result Update| Automobile
July 28 2010
Ashok Leyland NEUTRAL
CMP Rs73
Performance Highlights Target Price -
Y/E March (Rs cr) 1QFY11 1QFY10 % chg (yoy) Angel Est % Diff Investment Period -
Net Sales 2,348 913 157 2,660 (11.7)
S tock Info
Operating Profit 235 11.1 2,017 293 (19.6)
S ector Automobile
OPM (%) 10.0 1.2 881bp 11 (97)bp
Market Cap (R s cr) 9,578
Reported PAT 123 8.0 1,480 155 (21.1)
Beta 1.1
Source: Company, Angel Research
52 Week High / L ow 74/32
Ashok Leyland (ALL) registered a substantial 157% yoy growth in net sales for
Avg. Daily Volume 1,024,177
1QFY2011. However, lower-than-expected growth in other businesses (engine
and spare parts) restricted higher growth. Net average realisation declined due to Face Value (R s ) 1
the increase in excise duty and change in product mix. EBITDA margins came in BS E S ens ex 17,957
lower than our expectation at 10%. Net profit jumped on higher top-line and Nifty 5,398
improved operating leverage. We have revised our estimates upwards by ~3-4%
to account for the lower tax rate. R euters Code AS OK.BO
Bloomberg Code AL @IN
Strong volumes support healthy 157% growth in top-line; OPM’s up yoy on higher
operating leverage: For 1QFY2011, ALL reported a 157% yoy growth in net sales
to Rs2,348cr (Rs913cr), which was below our expectation. The jump in sales came
on the substantial 178% yoy growth in volumes. Net average realisation however, S hareholding P attern (% )
declined by 7.4% yoy owing to lower growth in other non-cyclical businesses like P romoters 38.6
engine and defense. During 1QFY2011, ALL witnessed 881bp yoy increase in MF / Banks / Indian Fls 23.9
EBITDA margin mainly on the back of improved operating leverage. Net profit
FII / NR Is / OCBs 27.9
surged1,480% yoy to Rs123cr (Rs7.8cr) on a low base, robust volume growth and
better operating performance. Indian P ublic / Others 9.6
Outlook and Valuation: Overall outlook for the domestic CV industry is
positive with volumes expected to grow 16-18% yoy in FY2011. A majority of
Abs . (% ) 3m 1yr 3yr
the factors that drive freight demand and consequently M&HCV demand have
turned positive and the CV manufacturers are expected to benefit from the S ens ex 3.3 17.1 17.9
economic recovery going forward. We recommend a Neutral on the stock As hok L eyland 30.0 107.1 94.6
owing to the recent run up in the stock price. Our fair value for ALL works out
to Rs73, at which level the stock would trade at 14x FY2012E earnings. We
prefer Tata Motor in the CV space as it is trading at reasonable discount in
relative terms.
Key Financials
Y/E March (Rs cr) FY2009 FY2010 FY2011E FY2012E
Net Sales 6,098 7,407 9,793 11,389
% chg (23.1) 21.5 32.2 16.3
Net Profit 178.8 383.6 575.5 689.8
% chg (60.3) 114.6 50.0 19.9
EBITDA (%) 7.5 10.2 10.4 10.5
EPS (Rs) 1.3 2.9 4.3 5.2
P/E (x) 53.9 25.1 16.8 14.0
Vaishali Jajoo
P/BV (x) 4.6 4.1 3.7 3.2 022-4040 3800 Ext: 344
RoE (%) 6.8 11.9 15.1 16.7 vaishali.jajoo@angeltrade.com
RoCE (%) 6.2 9.2 11.3 12.6
EV/Sales (x) 1.7 1.4 1.1 1.0 Yaresh Kothari
EV/EBITDA (x) 25.3 15.1 11.8 10.1 022-4040 3800 Ext: 313
yareshb.kothari@angeltrade.com
Source: Company, Angel Research
Please refer to important disclosures at the end of this report 1
2. Ashok Leyland |1QFY2011 Result Update
Exhibit 1: Quarterly performance
Y/E March (Rs cr) 1QFY11 1QFY10 % chg FY10 FY09 % chg
Net Sales 2,348 913 157.3 7,407 6,098 21.5
Consumption of RM 1,665.2 611.8 172.2 4,966.7 4,277.9 16.1
(% of Sales) 70.9 67.0 67.1 70.1
Staff Costs 202.5 144.1 40.5 671.6 563.1 19.3
(% of Sales) 8.6 15.8 9.1 9.2
Purchases of TG 69.4 50.9 36.4 244.9 202.2 21.1
(% of Sales) 3.0 5.6 3.3 3.3
Other Expenses 175.5 94.6 85.6 768.7 599.3 28.3
(% of Sales) 7.5 10.4 10.4 9.8
Total Expenditure 2,113 901 134 6,652 5,643 17.9
Operating Profit 235.4 11.1 2,016.9 755.2 456.0 65.6
OPM (%) 10.0 1.2 10.2 7.5
Interest 31.6 25.8 22.6 101.9 160.3 (36.5)
Depreciation 61.5 43.5 41.3 204.1 178.4 14.4
Other Income 4.7 60.6 (92.2) 95.5 91.2 4.7
PBT (excl. Extr. Items) 147.0 2.4 5,926.2 544.8 208.5 161.3
Extr. Income/(Expense) - - - 40.1 11.2 -
PBT (incl. Extr. Items) 147.0 2.4 5,926.2 504.7 197.2 155.9
(% of Sales) 6.3 0.3 6.8 3.2
Provision for Taxation 24.4 (5.3) - 121.1 18.5 556.4
(% of PBT) 16.6 (218.0) 24.0 9.4
Reported PAT 122.6 7.8 1,480.4 383.6 178.8 114.6
PATM (%) 5.2 0.9 5.2 2.9
Equity capital (cr) 133.0 133.0 133.0 133.0
EPS (Rs) 0.9 0.1 1,480.4 2.9 1.3 114.6
Source: Company, Angel Research
Exhibit 2: Quarterly volume performance
Y/E March (Rs cr) 1QFY11 1QFY10 % chg FY10 FY09 % chg
M&HCV Passenger 5,088 2,485 104.7 18,480 19,745 (6.4)
M&HCV Goods 16,039 4,977 222.3 44,348 33,349 33.0
LCV 275 231 19.0 1,247 1,350 (7.6)
Total Volume 21,402 7,693 178.2 64,075 54,444 17.7
Export (Inc. Above) 1,940 903 114.8 5,934 6,812 (12.9)
Source: Company, Angel Research
Strong volumes support healthy 157% growth in top-line: For 1QFY2011, ALL
reported a 157% yoy growth in net sales to Rs2,348cr (Rs913cr), which was below
our expectation. The jump in sales came on the substantial 178% yoy growth in
volumes. Net average realisation however, declined by 7.4% yoy owing to lower
growth in other non-cyclical businesses like engine and defense.
Engine volumes dropped to ~4,000 units (~4,500 units) with revenues of Rs74cr
for 1QFY2011. Defense revenues also declined to Rs12cr (Rs28cr in 4QFY2010),
with the company selling around ~140 kits in 1QFY2011 (~400 kits in
4QFY2010). The spare parts business recorded ~12% yoy growth to Rs137cr in
1QFY2011.
July 28 2010 2
3. Ashok Leyland |1QFY2011 Result Update
Exhibit 3: Net sales up 157% on 178% volume growth Exhibit 4: Revival in M&HCV segment boosts volume
(Rs cr) (%) (Units) (%)
4,000 225 30,000 225
157.3
141.3 178
3,000 150 22,500 150
81.4 139
101
2,000 75 15,000 75
(7.3)
1,000 0 7,500 0
(15.7) (58) (17)
0 (75)
0 (75)
1QFY10 2QFY10 3QFY10 4QFY10 1QFY11
1QFY10 2QFY10 3QFY10 4QFY10 1QFY11
Net Sales (LHS) Net Sales Growth (RHS) ALL total volumes yoy change
Source: Company, Angel Research Source: Company, Angel Research
Exhibit 5: Segment-wise market share trend
(%) M&HCV passenger M&HCV goods Total M&HCV
60
43.0
45 39.0 37.9
36.1
29.6
26.6 27.0
30
22.7 23.1
17.1 25.2
24.4
15 19.3 18.5
14.2
0
1QFY10 2QFY10 3QFY10 4QFY10 1QFY11
Source: Company, Angel Research, SIAM
OPM up on higher operating leverage: During 1QFY2011, ALL witnessed 881bp
yoy increase in EBITDA margin mainly on the back of increased improved
operating leverage. Staff cost and other expenditure, as a percentage of sales,
improved by 717bp and 289bp yoy, respectively. Raw material cost however,
increased by 12bp yoy and accounted for 73.8% (72.6%) of sales in 1QFY2011.
The company hiked prices to the extent of Rs14,500/vehicle (1.5%) in April 2010,
which helped to reduce the raw material cost pressures to a certain extent. Another
price hike action of ~Rs23,500/vehicle (2.5%) was taken by the company towards
June end 2010, which should further reduce the pressure going forward.
July 28 2010 3
4. Ashok Leyland |1QFY2011 Result Update
Exhibit 6: EBITDA margins up 881bp Exhibit 7: Substantial net profit growth on low base
(%) (Rs cr) (%)
100 240 7.6 8
73.2 73.9 200 5.8 5.2
72.6 70.2 71.4 5.6
75 6
160
50 120 4
80
25 10.5 11.4 12.9 2
10.0
0.9
1.2 40
0
0 0
1QFY10 2QFY10 3QFY10 4QFY10 1QFY11
1QFY10 2QFY10 3QFY10 4QFY10 1QFY11
EBITDA Margin Raw Material Cost/Sales Net Profit (LHS) Net Profit Margin (RHS)
Source: Company, Angel Research Source: Company, Angel Research
Net profit spikes 1,480% on low base: Net profit grew by a substantial 1,480% yoy
to Rs123cr (Rs7.8cr) on a low base, robust volume growth and better operating
performance. Interest cost increased substantially by 22.6% yoy on account of
increase in loans and interest costs. Depreciation also reported 41.3% yoy increase
during the quarter largely due to the ongoing capex. Lower tax rate however,
arrested further contraction in NPM.
Conference Call - Key Highlights
HCV segment growing faster: ALL has been able to post strong volume growth
following revival in demand in the heavy commercial vehicle (HCV) segment.
HCV volumes, which picked up from 4QFY2010, witnessed good traction in
1QFY2011. The HCV segment has been growing faster compared to the other
segments.
Demand pick-up in south: Although ALL has a pan-India presence, it
commands market share of close to 45% in the south. The HCV market in the
south witnessed an uptick during 1QFY2011 and management expects
demand to remain robust for the rest of the year. Management expects
stronger growth in the southern market to help the company increase its
overall market share.
Volume guidance: Management has revised its volume target for FY2011 to
~89,000 units from the earlier forecast of ~85,000 units. This includes
~80,000 of M&HCVs, 1,000 LCVs and about 8,000 units for exports. ALL has
a balance order book of ~1,000 units under the JNNURM and for another
1,000 units.
Increase in market share: ALL recorded ~200bp improvement in market share
in the northern and western regions during 1QFY2011. The company
recorded overall market share of 27% (26.5% in 4QFY10). The regional
market share in the HCV segment, as on 1QFY2011 was as follows: North
26%, South 45%, West 17% and East 10%.
Pantnagar plant update: Only 800 units were manufactured at the
Uttaranchal facility during 1QFY2011. However, the company expects to
manufacture 17,000-18,000 vehicles over the next nine months. The
July 28 2010 4
5. Ashok Leyland |1QFY2011 Result Update
company plans to ramp up production to optimal levels of 4,000 units/month
by March 2011.
Exports: Exports grew by ~100% during the quarter backed by demand from
Sri Lanka and Bangladesh. ALL expects strong demand growth from the
Middle East (Dubai and Saudi Arabia).
The company’s debt levels is pegged at ~Rs2,600cr and cash balance is at
~Rs150-200cr. ALL raised Rs300cr during 1QFY2011.
ALL plans to incur Rs700cr and Rs750cr capex during FY2011 and FY2012,
respectively. The spend will be towards manufacturing the new range of
Neptune engines, next generation cabs and on the joint venture with Nissan
Motor Co for LCV’s.
Management has indicated that the applicable tax rate is MAT. However, the
effective tax rate would be lower than MAT on account of the tax credits
available on research and development spends.
Exhibit 8: ALL-M&HCV passenger volume and market share Exhibit 9: ALL-M&HCV goods volume and market share
(Units) Market share (RHS) M&HCV passenger (%) (Units) Market share (RHS) M&HCV goods (%)
yoy growth (RHS) yoy growth (RHS)
8,000 210 24,000 300
6,000 140 18,000 200
4,000 70 12,000 100
2,000 0 6,000 0
0 (70) 0 (100)
1QFY07
2QFY07
3QFY07
4QFY07
1QFY08
2QFY08
3QFY08
4QFY08
1QFY09
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
1QFY07
2QFY07
3QFY07
4QFY07
1QFY08
2QFY08
3QFY08
4QFY08
1QFY09
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
Source: : Company, SIAM, Angel Research Source: Company, SIAM, Angel Research
July 28 2010 5
6. Ashok Leyland |1QFY2011 Result Update
Investment Arguments
Strong volume growth traction: The strong rebound in CV demand in FY2010,
on account of the revival in the Indian economy aided ALL in clocking higher
growth on a low base. As a result, ALL recorded a healthy 18% yoy growth in
FY2010. With CV demand in its mid cycle, we believe in FY2011 industry
would record double-digit volume growth. We estimate ALL to clock a volume
CAGR of around 21.3% over FY2010-12E.
Pantnagar plant help mitigate margin pressure: Management has indicated
the new tax-free unit at Pantnagar would be relatively more profitable, with
profitability estimated at around 25% higher than the existing plants. Thus,
EBITDA margins are expected to hold up at around 10.5% in FY2012E. The
company expects to manufacture more than 18,000 vehicles from the
Uttaranchal plant in FY2011 and further ramp it to ~45,000 vehicles in
FY2012. Total expenditure at the Uttaranchal plant is expected to be close to
Rs1,100cr, out of which Rs1,000cr has already been spent. This capex would
result in additional capacity of close to 50,000 vehicles per annum. Tax
benefit availed at the Pantnagar plant would help the company in saving
~Rs35,000/vehicle on the net realisation front.
JV contribution yet to crystallise: ALL has entered into an initial agreement to
form a JV with Nissan Motor Company for the development, manufacture and
distribution of LCV products. As ALL has a negligible presence in the LCV
space, this partnership would be positive for it in the long run. ALL expects
vehicle roll outs to start from the JV from 2011. Its JV with John Deere is
expected to start production from October 2010.
July 28 2010 6
7. Ashok Leyland |1QFY2011 Result Update
Outlook and Valuation
Overall outlook for the domestic CV industry is positive with volumes expected
to grow 16-18% yoy in FY2011. A majority of the factors that drive freight
demand and consequently M&HCV demand have turned positive and the CV
manufacturers are expected to benefit from the economic recovery going
forward.
We have revised our estimates upwards by ~3-4% to account for the lower tax
rate.
Exhibit 10: Change in estimates
Y/E March Earlier Estimates Revised Estimates % chg
FY11E FY12E FY11E FY12E FY11E FY12E
Net Sales (Rs cr) 9,790 11,382 9,793 11,389 - 0.1
OPM (%) 10.4 10.5 10.4 10.5 - -
EPS (Rs) 4.2 5.0 4.3 5.2 2.6 3.8
Source: Company, Angel Research
At the CMP of Rs73, the stock is trading at 16.8x FY2011E and 14.0x
FY2012E EPS. We recommend a Neutral on the stock owing to the recent run
up in the stock price. Our fair value for ALL works out to Rs73, at which level
the stock would trade at 14x FY2012E earnings. We prefer Tata Motor in the
CV space as it is trading at reasonable discount in relative terms.
Exhibit 11: Key Assumptions
FY07 FY08 FY09 FY10 FY11E FY12E
M&HCV Passenger (units) 15,445 22,262 19,745 18,480 21,252 23,377
M&HCV Goods (units) 67,296 60,224 33,349 44,348 59,870 65,857
LCV (units) 289 825 1,350 1,247 1,621 5,000
Total Volume (units) 83,030 83,311 54,444 64,075 82,743 94,234
% yoy chg 34.7 0.3 (34.6) 17.7 29.1 13.9
Domestic (units) 77,005 76,025 47,632 58,141 74,469 84,719
Exports (units) 6,025 7,286 6,812 5,934 8,274 9,515
Segment-wise Revenue break-up (Rs cr)
Vehicle 7,776 8,102 5,520 6,746 9,321 11,040
Engines 153 235 442 369 445 519
Spare Parts 547 791 800 885 974 1,071
Services and Others - 13 23 36 22 25
Total Revenue (Rs cr) 8,475 9,142 6,784 8,035 10,762 12,654
Source: Company, Angel Research
Exhibit 12: Angel v/s consensus forecast
Angel estimates Consensus Variation (%)
FY11E FY12E FY11E FY12E FY11E FY12E
Top Line (Rs cr) 9,793 11,389 9,294 10,988 5.4 3.6
EPS (Rs) 4.3 5.2 4.0 5.2 7.1 0.7
Source: Angel Research, Bloomberg
July 28 2010 7
13. Ashok Leyland |1QFY2011 Result Update
Research Team Tel: 022 - 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com
DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,
nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,
compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
the past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please
refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and
its affiliates may have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement Ashok Leyland
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below Rs 1 lakh for Angel, its Group companies and Directors.
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to 15%) Sell (< -15%)
July 28 2010 13