Shares of Ashok Leyland on Monday rose close to 8 percent in early trade as most brokerages remain bullish on the company and have raised the target price on the stock. Street also cheered the huge revenue jump in the company's quarterly earnings.Ashok Leyland stock opened with a gap up of 3.61 percent and was quoting at Rs 138.10 apiece on the BSE, up around 6 percent at 10:15 am.The stock has been gaining for last two consecutive sessions.[caption id="attachment_13579042" align="alignnone" width="437"] Ashok Leyland intraday stock chart (source: BSE)[/caption]The commercial vehicle maker exceeded Street expectations on all counts as it posted its earnings for the quarter ended March 2022.Profit came in much higher than what was expected at Rs 901.4 crore, while revenue saw a huge jump of 25 percent on a year-on-year (YoY) basis to Rs 8,744 crore.The company’s executive chairman Dheeraj Hinduja believes that the commercial vehicle (CV) industry in on the mend, in tandem with the macroeconomic environment."We have seen recovery in the fourth quarter and the overall performance has been very good. The commercial vehicle industry is on a recovery owing to the improvement in the macroeconomic environment and healthy demand from the end-user industries," said Dheeraj Hinduja.Hinduja attributes the recovery to MHCV (medium and heavy commercial vehicle) segment, which he thinks is turning the tide in favour of the company.“The MHCV segment is leading the recovery, riding on the back of growth in core sectors such as construction and mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand,” he added.Jefferies maintains a 'buy' rating on the stock, raising the target price to Rs 160 from Rs 130 as it expects an upcycle ahead.Meanwhile, Nomura has raised the target price on the stock to Rs 168 as it believes the CNG range could improve the company's market share.CLSA has an 'outperform' rating on the stock with a target price of Rs 149 as it is bullish on the CV upcycle and expects it to last for the next three years.Market expert Prakash Diwan believes the company is finally getting out of a sluggish operating band. He said, "It seems like Ashok Leyland is finally moving out from a very sluggish kind of an operating band in terms of its metrics to something where things could kind of look up or continue to be very strong.""Couple of reasons to back that — the industrial activity itself is likely to start moving up, because of the government's fight against inflation, the kind of support that it wants to lend to the domestic side of the core economy. If that starts translating immediately you will see a comeback that that commercial vehicles will mix," he explained."Ashok Leyland has the right product mix to benefit probably before Tata Motors and M&M joined the bandwagon. So my sense is yes, it will probably be the go to stock for allocations to commercial vehicles within the auto pack," Diwan added.