Stock Analysis - Example with Ashok Leyland
Ashok Leyland (AL) is 2nd largest commercial vehicle in India. Disclaimer - The below items are based on personal learning over a few months so I'm not a expert and recommend ppl reading(incase anyone) to do their own research and plunge into share market. This is no way a recommendation page. Why I'm buying AL shares in (Nov-Dec) '19 ? The current slump is temporary due to economic conditions and Axle /BS VI norms. Also this has resulted in large inventory in Q3. So I hope to see there will be turn around in March'20. Earnings Per Share - Net Profit dividend by Number of shares. For example - 2019 Net Profit is Rs.19832000000 / Number of outstanding shares is 2935527000. Earning Per share is 6.76. What will be share price of AL in 2023 ? My assumption it will be between Rs.197-340 i.e. with average 20% growth year on year. Why averaging at 20% - One year it can go as high as 30% and other year at 10% . With mSME picking up volu...