Brokerage house Centrum Broking has given a ‘buy’ call for Ashok Leyland shares, despite the company reporting losses in the recent quarters.
“We expect margin pressure to continue as the company focuses on market share improvement with aggressive pricing and CNG model launches,” it said.
The brokerage is bullish on the automobile company on the back of recovery in commercial vehicle segment, which, in turn, is expected to drive volume growth.
Also, the brokerage sees value unfolding from the auto manufacturer’s subsidiary company Switch Mobility business in the long-term.
The target price is set at Rs 158 per share, against its current price of Rs 127.