India's Ashok Leyland rises after RBI rate cut, Morgan Stanley target price hike

Ashok Leyland

06/06/2025 08:01

** Shares of Ashok Leyland ASOK.NS rise 3.3% to 241.73 rupees apiece

** ASOK is the top percentage gainer in auto index .NIFTYAUTO, which is up 1.25% boosted by larger-than-expected rate cut from the Reserve Bank of India

** Morgan Stanley reiterates "overweight" on ASOK and hikes target price to 288 rupees from 284 rupees, implying an upside of 23.1% over the last close in the next 12 months

** Strong net cash position will help ASOK offset subdued domestic volumes due to slower demand in fiscal 2026, says Morgan Stanley

** Brokerage says overall volume estimates remain unchanged, due to a potential increase in export volumes estimates

** The average rating of 34 analysts tracking ASOK is "buy", median target price is 255 rupees, according to data compiled by LSEG

** ASOK shares up 6.1% in 2025 so far, outperforming the 3.3% rise in auto index .NIFTYAUTO, exchange data shows

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))