Outlook & Valuation: We believe AAL is comfortably placed to tap the upcoming
opportunity in the industry owing to improving road infra, BS-VI pre-buying and
foray into new segment coupled with expansion of capacity by 35-40%. At the CMP
of Rs1,250, the stock is available at 12.3x its FY2020E EPS of Rs96. We have assigned a
multiple of 15x and recommend BUY on AAL with a target price of Rs1,450, implying
an upside of 16% over the next 9-12 months.

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