Ashok Leyland (Q3 FY10) – Market Performer (Target Price Rs54, Upside 4.5%)
* Net sales jump 81.4% yoy to Rs18.2bn on back of 101.4% yoy volume growth.
* Operating profit surged 148% yoy and OPM expanded by 305bps yoy to 11.4%
* Employee cost as a percentage of sales decline by 268bps yoy on back of benefits of operating leverage
* Upgrade the stock to Market Performer from SELL
