Massive expectations! Ashok Leyland share price to give up to 50 pct return; Budget 2021 holds key, say stock market experts

Ashok Leyland share price has been trading in the range of Rs 95 to Rs 125 per stock levels and if we go by the stock market experts, if any positive announcement comes on February 1, the commercial vehicle major can go up to Rs 150 per stock levels in next one year. Stock experts were of the opinion that Ashok Leyland shares have strong support at Rs 95 to Rs 100 and before the budget, there could have been some profit-booking taking place as it has zoomed up to Rs 125 range after the announcement of new scrappage policy.

Speaking on the fundamentals supporting Ashok Leyland share price Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Post-COVID-19 pandemic, commercial vehicle sales were expected to go up and it happened as expected. However, the commercial vehicle sales further picked after the announcement of the new scrappage policy. But, when the entire policy came to the fore, it wasn't found so promising as the government allowed it to continue with the old vehicles giving higher taxes in the name of green charge. So, the new policy is not going to aid commercial vehicle sales and hence profit booking in Ashok Leyland share is widely awaited."

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However, Gorakshkar said that Ashok Leyland shares may further pick momentum post-budget as some big announcement for cement and infrastructure sector is expected on 1st February. If that happens, then the benefit to these sectors will trickle down to the commercial vehicle segments too. Ashok Leyland being the market leader in the commercial vehicle segment would definitely be a major beneficiary of this expected trickle down.

On technical charts of Ashok Leyland shares; Rohit Singre, Senior Technical Research Analyst at LKP Securities said, "Ashok Leyland share price has made double top pattern that reflects profit-booking to trigger in next trading sessions. So, I would suggest stock market investors to wait for the profit booking and take fresh buy position at Rs 100 levels."

On suggestion to the investors in regard to Ashok Leyland shares Avinash Gorakshkar said, "In one year perspective, I would recommend Ashok Leyland share to buy around Rs 100 for the target of Rs 140 to Rs 150 levels maintaining stop loss below Rs 95."