Ambit Capital has a BUY Recommendation on Ashok Leyland with the following review,
The DCF model values the core standalone CV business at `28/share, implying 6.8x FY14 EBITDA, a 10% discount to the 6-year average and the same multiple we assign to Eicher Motors. Of the total investments made by AL outside the standalone CV business, we assign values to its stake in Nissan and John Deere JVs and IndusInd Bank to arrive at a SOTP-based TP of Rs 33/share, a 33% upside from current levels of Rs 25.
