Shares of Ashok Leyland touched a 52-week low of Rs 63.90, down 8.7 percent, intraday on August 2 after the commercial vehicle manufacturer reported weak sales numbers for July 2019.
The company's total sales declined 28% at 10,927 units against 15,199 units in the same month last year. Its medium and heavy commercial vehicle (M&HCV) sales were down 39 percent at 6,722 units against 10,996 units in the year-ago period.
The total light commercial vehicle (LCV) sales were flat at 4,205 units against 4,203 units in July 2018.
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Nomura has maintained neutral rating on the stock and cut the target price to Rs 72 per share.
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The research house sees risk of a steeper downcycle and is not expecting an upcycle before FY22.
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At 09:59 hours Ashok Leyland was quoting at Rs 64.10, down Rs 4.85, or 7.03 percent, on the BSE.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more. First Published on Aug 2, 2019 10:18 am