Ashok Leyland stock was up 2.86 percent on Tuesday despite a cautious note from HSBC.
According to HSBC, there is a slowdown in the commercial vehicle sector and they prefer Tata Motors to Ashok Leyland because of valuations.
The firm has a hold rating on the stock with a target price of Rs 145.
The note states that the commercial vehicle space is expected to grow just 8 percent in FY24 which is slower compared to last year.
Also for Ashok Leyland the market share has likely peaked, while they believe that for Tata Motors, the worst of the market share fall is behind.
The note also highlights that there is very little room for margin expansion from hereon for Ashok Leyland.
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