Revenues from operations in the quarter under review stood at Rs 11,266.69 crore as compared to Rs 11,625.67 crore in the year-ago period.
Here’s how brokerages view the Q4 performance:
JM Financial
Demand momentum in the domestic market continues to remain healthy led by pick-up in replacement demand. The company reiterated its focus on profitable growth. Medium-term demand drivers (higher infra spends, scrappage policy, etc.) remain intact and AL aims for higher share in MHCVs (to c.35%) and LCV led by network expansion and addressing product gaps.
JM Financial maintained a ‘buy’ rating on stock with a target price of Rs 275.
Motilal Oswal
Motilal expects a recovery in CV demand from 2HFY25 onwards as structural demand drivers remain intact. The company is the best investment choice in the CV growth cycle, as it has positioned itself to expand revenue/profit pools. Moreover, its focus on profitable growth driven by lower discounts, a better mix, and cost control measures should bode well for EBITDA margin expansion over FY24-26E.The brokerage firm raised its FY25E/FY26E EPS by 7%/6% to factor in a better gross margin and a lower interest burden.
They have a ‘buy’ call on the stock with a target price of Rs 245.
Also read: Divi’s Laboratories shares rally 5% post Q4 results. Should you buy, sell or hold?
Kotak Institutional Equities
KIE expects CV industry volumes to recover post elections, especially driven by the buses segment. Also, they expect profitability of the company to be maintained at current levels in FY2025E driven by increase in non-auto mix and cost-control measures.
Kotak has a ‘reduce’ rating on the stock with a target price of Rs 200.
ICICI Securities
ICICI Securities is expecting overall switch mobility to remain EBITDA positive in FY25 aided by India business’ strong pipeline. ICICI Securities has built in flat volumes for the domestic M&HCV goods industry in FY25E, before a 10% dip in FY26E, thus factoring in AL’s M&HCV volume CAGR at 6% over FY24-26E, assuming steady market share.
ICICI Securities has a ‘sell’ view on the stock with a target price of Rs 140.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
