Ashok Leyland

I have allocated 7% of my “value-stocks” portfolio to it. It is a very good fundamental company. In my opinion, Ashok Leyland is the best defence company moment being with Astra Microwave next to it.

The most recent news is –

• Ashok Leyland expects its defence business to log four-fold jump in revenues at over ₹ 2,000 crores in next five years as it gears up to provide an entire range of mobility solutions, including missile carrying vehicles, to the armed forces.
• They have won 13 out of last 15 tenders!
• Ashok Leyland plans to set up manufacturing facilities in Andhra Pradesh, Telangana

Another good point is Company has reduced its debt which mean they may take another loan to increase their cash flow or they kill the rest debt to suppress the rest interest.

Anyways, I see it as a profit.

It gives a great dividend compared to other companies of this industry (Ashok Leyland – 37%; Astra Microwave – 17%)

After all it is my first stock which made me quite a money; I think we are about to get a next big wave on it.

Looking at long term.

It is a safe as the market is not getting pulled down despite of strong bears and hence making hammers. The MACD is about to cross and the STOCH is just back to head to the good region.

But

The only thing that is concerning me is Stock is trading at 5 times its book value.

Well

But if you are looking for short term, do not touch this stock because it may go down in this quarterly results. As far as I have calculated it may touch the levels of 76. Quarterly profit of 10% doesn’t sound good for this company.

This stock always creates longer trend pattern and acts according to Financial Press List and Sales Update.

These were predictable from above those links.

If the stock reflects sales of 10500+ on Oct-2016, then I will increase 3% stake in this company immediately.

But I am thinking that it will report less sales in Oct-2016 than Sept-2016. It is a clear trend from their previous Sales Updates. I assume it to be in 9000–10000 range.

Gist

Buy it if and only if you are going to hold long term of 1 year+ as there are strong chances of it to be a multibagger but wait till the outcome of quarterly results and act at the end of that very day.