Positional Trade (Ashok Leyland)

About Company:
Ashok Leyland (AL) is India's second-largest Commercial Vehicles (CVs) manufacturer. It has a significant presence in the truck segment, with a market share of more than 30% in FY22.

Result Insights:
->The company reported revenue of Rs. 8744 Cr in FY '22, up from Rs. 7,000 Cr in the same period last year; revenue increased by 25% year on year.
->PBT for the quarter was Rs. 999 crores, compared to Rs. 314 crore in the same period last year.
->EBITDA in the fourth quarter was 8.9 %, up from 7.6 % the previous year.
->PAT for the year was Rs.542 crore, compared to a loss after tax of Rs.314 crore the previous year.
->Full-year EBITDA was 4.6 percent, up from 3.5 percent the previous year.

Fundamental Factors:
->The company has turned profitable this year on the back of solid sales and improved operating margins.
->Its truck market share for Q4 FY'22 increased to 30.6 % from 28.9 % in Q4 FY'21, the highest market share in the last 11 quarters.
->The CV industry is on the path to recovery as a result of the improved macroeconomic environment and healthy demand from end-user industries.
->The company has recently launched the AVTR range - India's first modular truck platform, which customers have widely appreciated. This can assist the company in gaining a larger market share.
->On a year-to-year basis, the company's export volume of 11014 units is 38% higher than the previous year's (8,001 units).

Technical Analysis:
-> The stock recently checked/tested the multi-time demand zone and recovered from there.
-> It has also tested a major weekly and daily support level and recovered beautifully from there.
-> The stock price is currently hovering around the 200 day EMA which is a sign of strength for the stock.
->For the past 5 months, it has been following a trendline; a decisive break of that trendline will result in a sharp rally in the stock price.

Entry Level: Above 125(15 mins closing)
Target 1: 131.85 (For short term traders, time frame 1-2 days)
Target 2: 140 (Time Frame: 1-1.5 months)
Stop loss: 120 (15 mins closing)

Disclaimer: The above information is only for educational purposes. Please consult your financial advisors before making any investment decision.
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