Nomura has downgraded India's second-largest truck and bus manufacturer, Ashok Leyland to 'neutral' from 'buy' and cut its target price to Rs 26 from Rs 34. The stock was last trading 0.4% up at Rs 25.50.
The brokerage cites rising competition eating into the volumes as the main reason for the downgrade.
Nomura is estimating flat volumes and 9.4% margins in FY13 for the company, which is below the management guidance of 15% volume growth and 10% margins.
