KR Choksey on Ashok Leyland going forward:
The company is focusing on a cost reduction plan under the Project ‘Reset’ which will reduce overall cost structure and improve efficiency. The management stated that the company achieved cost saving of Rs 540 crore in FY20 due to efficient cost management. KR Choksey expects new platforms to reduce the production cost and overall overheads. The capex of all the major projects is almost over and capex for FY21 is expected at Rs 550-600 crore mainly towards maintenance and for small projects. The brokerage recommends traders to buy the stock with a target price of Rs 86.