Ashok Leyland Limited (ASHOKLEY) AI Stock Analysis

• Market Cap: ₹1.02T
• Dividend Yield: 1.8%
• Average Volume (3M): 858.02K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 1.12
• Revenue Growth: 9.53%
• EPS Growth: 24.00%
• Country: IN
• Employees: 9,607
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.31
• Shares Outstanding: 5,873,854,500
• 10 Day Avg. Volume: 424,792
• 30 Day Avg. Volume: 858,024
• PEG Ratio: 0.79
• Price to Book (P/B): 5.03
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -40.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹155.00
• Price Target Upside: -12.43% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹173.00 ▼(-2.26% Downside)

Ashok Leyland Limited's strong financial performance and bullish technical indicators are offset by high leverage and an overbought technical condition. The stock's valuation appears high, which could limit upside potential.

Positive Factors

Revenue Growth

Sustained revenue growth indicates robust demand for products and effective market penetration, supporting long-term business expansion.

Profitability Improvements

Improved profitability reflects effective cost management and operational efficiency, strengthening the company's financial health.

Product Innovation

Ongoing investment in R&D fosters innovation, maintaining competitive advantage and attracting a broader customer base.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially affecting the company's ability to invest in growth and manage economic downturns.

Negative Free Cash Flow

Negative free cash flow limits financial flexibility, potentially constraining investment in new opportunities and debt reduction.

Cash Conversion Challenges

Difficulty in converting profits to cash can impact liquidity and the ability to fund operations and growth initiatives.

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; haulage and ICV distribution trucks, as well as tractors and tippers; light and small commercial vehicles, goods carriers, and passenger vehicles; and defense vehicles comprising logistics, high mobility, armored, light tactical, tracked, and simulator vehicles. It also provides power solutions, such as diesel generators, agriculture engines, industrial engines, and marine engines; spare parts, including trailer axle and suspension, repair, and retro fitment kits; and vehicle and housing financing services. In addition, the company trades in commercial vehicles; offers manpower supply services and air chartering services; provides IT services; and driver training services, as well as manufactures forgings and castings. Further, it operates retail stores; and LeyKart, an e-commerce store for spare parts. The company was incorporated in 1948 and is headquartered in Chennai, India. Ashok Leyland Limited is a subsidiary of Hinduja Automotive Limited.

How the Company Makes Money

Ashok Leyland generates revenue primarily through the sale of commercial vehicles, including heavy and light trucks, buses, and vans. The company has a robust revenue model that includes direct sales to various sectors such as transport, logistics, and infrastructure. In addition to vehicle sales, Ashok Leyland earns significant income from the sale of spare parts and after-sales services, which contribute to recurring revenue. The company also engages in exports, reaching international markets that enhance its revenue streams. Strategic partnerships with financial institutions enable customers to access financing options for vehicle purchases, further driving sales. Additionally, Ashok Leyland invests in research and development to innovate and introduce new products, which helps maintain a competitive edge and attract a broader customer base.

Ashok Leyland Limited Financial Statement Overview

Summary

Ashok Leyland Limited shows strong revenue growth and profitability improvements, supported by effective cost management. However, high leverage poses potential risks to financial stability. Cash flow management is improving, but negative free cash flow highlights the need for continued focus on cash generation.

Income Statement

Ashok Leyland Limited demonstrates strong revenue growth with a consistent upward trajectory over the past years. The gross profit margin is robust, reflecting effective cost management. Net profit margin has improved significantly, showing enhanced profitability, although it was negative in earlier periods. EBIT and EBITDA margins indicate solid operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively high, suggesting substantial leverage which can pose financial risks. However, the return on equity has shown improvement, indicating better profitability relative to shareholder equity. The equity ratio reflects a moderate level of financial stability as the company maintains a reasonable proportion of equity in its asset structure.

Cash Flow

Cash flow analysis reveals mixed performance. While operating cash flow has improved, free cash flow remains negative due to significant capital expenditures. The operating cash flow to net income ratio is low, indicating challenges in converting profits into cash. However, recent improvements in cash flows are promising, pointing towards potential stabilization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	494.03B	485.35B	456.05B	414.88B	261.10B	193.78B
Gross Profit	195.23B	188.56B	162.58B	125.53B	84.23B	41.34B
EBITDA	100.54B	94.87B	80.16B	52.59B	25.28B	26.70B
Net Income	32.09B	31.07B	24.84B	12.39B	-3.59B	-1.65B
Balance Sheet
Total Assets	0.00	817.15B	676.60B	547.46B	436.01B	420.67B
Cash, Cash Equivalents and Short-Term Investments	118.61B	118.61B	68.62B	61.47B	44.78B	26.47B
Total Debt	0.00	499.62B	408.02B	311.61B	241.45B	240.77B
Total Liabilities	-158.45B	658.70B	558.46B	439.50B	350.11B	329.37B
Stockholders Equity	158.45B	122.32B	90.05B	85.52B	73.04B	78.62B
Cash Flow
Free Cash Flow	0.00	-15.20B	-73.92B	-54.28B	23.36B	-18.17B
Operating Cash Flow	0.00	1.28B	-62.58B	-44.99B	28.45B	-10.65B
Investing Cash Flow	0.00	-57.58B	11.35B	-29.35B	-19.17B	-9.91B
Financing Cash Flow	0.00	69.58B	84.32B	72.81B	-3.78B	13.31B

Ashok Leyland Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 177.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASHOKLEY, the sentiment is Positive. The current price of 177 is above the 20-day moving average (MA) of 162.01, above the 50-day MA of 149.03, and above the 200-day MA of 126.41, indicating a bullish trend. The MACD of 6.82 indicates Negative momentum. The RSI at 79.18 is Negative, neither overbought nor oversold. The STOCH value of 95.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ASHOKLEY.

Ashok Leyland Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMLISUZU	72 Outperform	₹53.16B	37.57	―	0.47%	6.04%	14.86%
BHARATFORG	69 Neutral	₹688.30B	63.62	―	0.58%	-3.52%	11.27%
ASHOKLEY	66 Neutral	₹1.02T	31.29	―	1.80%	9.53%	24.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SCHNEIDER	63 Neutral	₹173.73B	68.57	―	―	12.77%	31.32%
BDL	61 Neutral	₹502.96B	76.89	―	0.34%	82.69%	18.17%
BEML	61 Neutral	₹143.27B	48.42	―	0.31%	-1.31%	3.61%

Ashok Leyland Limited Corporate Events

Ashok Leyland Clarifies Merger Rumors Regarding Subsidiary

Ashok Leyland Limited clarified a recent rumor regarding the merger of its material subsidiary, Hinduja Leyland Finance Limited (HLFL), with NDL Ventures Limited. Contrary to reports, the company stated that HLFL’s board had approved a merger scheme, subject to regulatory approvals, and had informed stock exchanges accordingly. The Hindu Businessline corrected its earlier report to reflect this accurate information. Ashok Leyland emphasized its commitment to transparent communication and regulatory compliance.

Ashok Leyland Updates on Subsidiary Compliance with SEBI Regulations

Ashok Leyland Limited has announced an update regarding its material subsidiary, Hinduja Leyland Finance Limited, in compliance with SEBI regulations. This disclosure is part of ongoing regulatory obligations and reflects the company’s commitment to transparency and adherence to financial governance standards, potentially impacting its operational credibility and stakeholder trust.