Ashok Leyland Limited (IN:ASHOKLEY)
:ASHOKLEY
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Ashok Leyland Limited
(ASHOKLEY)
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Rating:65Neutral
Price Target:
₹185.00
▲(7.37% Upside)
Action:ReiteratedDate:04/09/26
The score is primarily supported by solid financial performance (revenue growth and margin/profitability improvement), but is meaningfully constrained by leverage and weak cash-flow conversion. Technical indicators show a bearish trend with oversold readings, and valuation is on the expensive side given the P/E and modest yield.
Positive Factors
Revenue Growth & Profitability
Ashok Leyland's sustained double-digit revenue growth and improving gross and net margins point to durable demand and better cost control. Improved profitability from earlier losses increases earnings resilience, enabling reinvestment and stronger coverage of fixed costs over time.
Negative Factors
High Leverage
Relatively high debt-to-equity increases interest and refinancing risk and constrains strategic flexibility. In a cyclical commercial-vehicle market, leverage reduces the firm's ability to absorb demand shocks, fund aftermarket expansion, or invest countercyclically without raising cost of capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Profitability
Ashok Leyland's sustained double-digit revenue growth and improving gross and net margins point to durable demand and better cost control. Improved profitability from earlier losses increases earnings resilience, enabling reinvestment and stronger coverage of fixed costs over time.
Read all positive factors
Ashok Leyland Limited (ASHOKLEY) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.01T
Dividend Yield1.76%
Average Volume (3M)858.02K
Price to Earnings (P/E)32.5
Beta (1Y)1.20
Revenue Growth9.53%
EPS Growth24.00%
CountryIN
Employees9,607
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)1.36
Shares Outstanding5,873,854,500
10 Day Avg. Volume424,792
30 Day Avg. Volume858,024
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)5.03
Price to Sales (P/S)1.27
P/FCF Ratio-40.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹227.33Price Target Upside31.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)7.77
Revenue Forecast (FY)₹486.96B
Ashok Leyland Limited Business Overview & Revenue Model
Company Description
Ashok Leyland Limited, together with its subsidiaries, manufactures and sells commercial vehicles in India and internationally. The company offers city, inter-city, school and college, staff, tourist, stage carrier, and airport shuttle buses; haul...
How the Company Makes Money
Ashok Leyland primarily makes money by selling commercial vehicles and related components into domestic and export markets. Its core revenue stream is the manufacture and sale of trucks and buses (including fully built vehicles and chassis supplie...
Ashok Leyland Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 507.58B | 483.42B | 455.17B | 414.88B | 261.10B | 193.78B |
| Gross Profit | 201.90B | 185.60B | 161.71B | 125.53B | 84.23B | 72.73B |
| EBITDA | 102.45B | 96.13B | 80.16B | 52.59B | 25.35B | 26.69B |
| Net Income | 32.59B | 31.07B | 24.84B | 12.39B | -3.59B | -1.65B |
Balance Sheet | ||||||
| Total Assets | 853.10B | 817.15B | 676.60B | 547.46B | 436.01B | 420.67B |
| Cash, Cash Equivalents and Short-Term Investments | 101.41B | 118.61B | 68.62B | 61.47B | 44.78B | 26.47B |
| Total Debt | 545.13B | 499.62B | 408.02B | 311.61B | 241.45B | 240.77B |
| Total Liabilities | 686.85B | 658.70B | 558.46B | 439.50B | 350.11B | 329.37B |
| Stockholders Equity | 125.83B | 122.32B | 90.05B | 85.52B | 73.04B | 78.62B |
Cash Flow | ||||||
| Free Cash Flow | -64.68B | -15.20B | -73.92B | -54.28B | 23.36B | -18.17B |
| Operating Cash Flow | -51.48B | 1.28B | -62.58B | -44.99B | 28.45B | -10.65B |
| Investing Cash Flow | 4.33B | -57.58B | 11.35B | -29.35B | -19.17B | -9.91B |
| Financing Cash Flow | 28.77B | 69.58B | 84.32B | 72.81B | -3.78B | 13.31B |
Ashok Leyland Limited Technical Analysis
Negative
172.30
Price Trends
189.48
Negative
177.93
Negative
153.64
Negative
Market Momentum
-11.65
Positive
32.28
Neutral
25.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASHOKLEY, the sentiment is Negative. The current price of 172.3 is above the 20-day moving average (MA) of 169.62, below the 50-day MA of 189.48, and above the 200-day MA of 153.64, indicating a bearish trend. The MACD of -11.65 indicates Positive momentum. The RSI at 32.28 is Neutral, neither overbought nor oversold. The STOCH value of 25.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ASHOKLEY.
Ashok Leyland Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹232.25B | 44.51 | ― | ― | 12.77% | 31.32% | |
65 Neutral | ₹1.01T | 32.46 | ― | 1.76% | 9.53% | 24.00% | |
65 Neutral | ₹851.28B | 66.47 | ― | 0.58% | -3.52% | 11.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ₹132.13B | -173.04 | ― | 0.29% | -1.31% | 3.61% | |
59 Neutral | ₹473.29B | 184.29 | ― | 0.33% | 82.69% | 18.17% |
* Industrials Sector Average
IN:ASHOKLEY
Ashok Leyland Limited
172.30
72.43
72.52%
IN:BDL
Bharat Dynamics Ltd.
1,291.15
9.13
0.71%
IN:BEML
BEML Limited
1,586.35
-594.36
-27.26%
IN:BHARATFORG
Bharat Forge Ltd
1,780.60
815.29
84.46%
IN:SCHNEIDER
Schneider Electric Infrastructure Limited
971.35
407.90
72.39%
Ashok Leyland Limited Corporate Events
Ashok Leyland Files SEBI Regulation 74(5) Compliance Certificate for March Quarter
Apr 8, 2026
Ashok Leyland Limited has submitted a confirmation certificate to the stock exchanges for the quarter ended March 31, 2026, in compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, based o...
Ashok Leyland Confirms CSK Sponsorship, Says No Impact on Material Disclosures
Mar 8, 2026
Ashok Leyland has confirmed that it became an official sponsor of the Indian Premier League team Chennai Super Kings, with the announcement made at a press conference in Chennai covered by major media outlets. The company has clarified to stock ex...
Ashok Leyland Updates Exchanges on Filing by Material Subsidiary Hinduja Leyland Finance
Feb 19, 2026
Ashok Leyland has notified stock exchanges about an intimation filed by its material subsidiary, Hinduja Leyland Finance Limited, under SEBI’s Listing Obligations and Disclosure Requirements Regulations. The communication references a series...
Ashok Leyland Posts 27% Rise in Total Vehicle Sales in January 2026
Feb 1, 2026
Ashok Leyland reported strong sales momentum in January 2026, with total domestic vehicle sales rising 31% year-on-year to 20,079 units, driven by robust growth in MHCV trucks (up 45%) and LCVs (up 33%), while domestic bus volumes declined 27%. In...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.