Ashok Leyland Ltd's shares fell as much as 8.8 per cent to Rs 108.5, their lowest since October 11, as the company had on Tuesday posted a lower-than-expected 37.5 per cent rise in Q2 profit due to higher raw material costs.
Chief Executive Officer Vinod K. Dasari resigned after nearly 14 years with the company, the truckmaker said in a separate statement.
“We stay cautious as we expect FY20 to be peak of cycle and valuations are not cheap in that context,” said Jefferies.
The brokerage has cut the price target to Rs 112 from Rs 120. Ashok Leyland stock posted biggest intraday loss in over 1 month; it was trading at volumes nearly 1.7 times its 30-day avg at 0440 GMT.