Stock market analysts have maintained ‘buy’ rating on Ashok Leyland stock with a short term target of Rs 16.5.

According to analysts, interested investors can purchase the stock on declines with a stop loss of Rs 14.3. If the stock market remains positive in the coming days, the stock pricing becomes more attractive, and reach above Rs 17.5.
 
Today (Jan 19), the company’s shares opened at Rs 15.30 on the Bombay Stock Exchange (BSE), as against its last closure at Rs 15 on Friday (Jan 16). Current EPS & P/E ratio stood at 3.15 and 4.76 respectively. The share price has seen a 52-week high of Rs 49 and a low of Rs 12.45 on BSE.

The company’s stock has been in a short-term correction since the January 6 peak at Rs 16.9. This decline stopped at Rs 14 last Thursday after retracing 61.8% of its previous up-move.

A morning star pattern is noticeable in the daily candlestick chart. This is a cheerful reversal pattern. It can be assumed that the correction since the first week of January has finished and the stock is in a fresh up-move.

The company also declared that a meeting of the company’s directors will be held on January 28, 2009, to take on record the Un-audited Financial Results of the Company for the quarter ended December 31, 2008 (Q3).

Ashok Leyland, on Jan 12, has pocketed an order worth $10.5 million for 139 vehicles from the Honduras Armed Forces (HAF).

The above vehicles will develop HAF’s transport resources to carry out key poverty eradication plans and for other humanitarian reasons. The tender is financed under an Exim Bank of India line of credit.

Ashok Leyland sold 2,321 vehicles during the last month, which was 63.4% lower than in December last year (6,340 vehicles).

Sequentially, the company sales fell by 31.6 per cent in December over the previous month.