Ashok Leyland

Why is Ashok Leyland Ltd. falling/rising?

As of 22-Jun, Ashok Leyland Ltd. is seeing a slight rise in its stock price, indicating a potential recovery after recent declines. However, concerns about high debt and pledged shares may pose risks to future price stability.

As of 22-Jun, Ashok Leyland Ltd. is experiencing a slight rise in its stock price, currently at 157.05, with a change of 0.35 (0.22%) upward. This increase follows a trend reversal after two consecutive days of decline. The stock's performance today is reported to be in line with its sector, indicating a potential recovery phase.<BR><BR>Despite the recent uptick, the stock has shown a negative performance over the past week and month, with declines of 0.38% and 0.73%, respectively. Year-to-date, the stock is down 12.31%, although it has performed well over the past year, generating a return of 33.52%, significantly outperforming the broader market, which saw a return of only 0.51%.<BR><BR>Positive factors contributing to the stock's current rise include healthy long-term growth metrics, such as a 23.73% annual growth rate in net sales and a 42.64% increase in operating profit. The company has also reported positive results for the last five consecutive quarters, with a profit after tax growth of 20.80% and a net sales growth of 20.18% over the latest six months. Furthermore, the stock is trading at a discount compared to its peers, with an attractive valuation indicated by a return on capital employed (ROCE) of 15.7 and a PEG ratio of 1.2.<BR><BR>However, there are concerns that may counterbalance the positive aspects. The company has a high debt-to-equity ratio of 3.16, which raises red flags for investors, particularly as 40.1% of promoter shares are pledged. This situation can exert additional downward pressure on the stock in a falling market.<BR><BR>In summary, while Ashok Leyland Ltd. is currently rising due to positive financial performance and a trend reversal, the underlying issues related to high debt and pledged shares could pose risks for future price stability.

Which are the latest news on Ashok Leyland?

What does Ashok Leyland do?

Ashok Leyland Ltd. manufactures and sells commercial vehicles and is a mid-cap player in the automobile industry. As of March 2026, it reported net sales of ₹17,246 Cr and a net profit of ₹1,291 Cr, with a market cap of ₹85,024 Cr.

Overview:<BR>Ashok Leyland Ltd. is engaged in the manufacture and sale of commercial vehicles and operates within the mid-cap segment of the automobiles industry.<BR><BR>History:<BR>Ashok Leyland was incorporated in the year 1948. The latest quarterly results reported are for March 2026, showing net sales and profit figures.<BR><BR>Financial Snapshot:<BR>- Net Sales: 17,246 Cr (Quarterly Results - Mar 2026)<BR>- Net Profit: 1,291 Cr (Quarterly Results - Mar 2026)<BR>- Market Cap: INR 85,024 Cr (Mid Cap)<BR><BR>Key Metrics:<BR>- P/E: 22.00<BR>- Industry P/E: 23<BR>- Dividend Yield: 2.43%<BR>- Debt-Equity: 3.29<BR>- Return on Equity: 26.31%<BR>- Price to Book: 5.93<BR><BR>Contact Details:<BR>Address: No 1 Sardar Patel Road, Guindy Chennai Tamil Nadu : 600032<BR>Tel: 91-44-22206000<BR>Email: secretarial@ashokleyland.<BR>Website: http://www.ashokleyland.com

How big is Ashok Leyland?

As of 10th June, Ashok Leyland Ltd. has a market capitalization of 85,024.00 Cr, with recent net sales of 56,362.08 Cr and a net profit of 3,471.03 Cr over the last four quarters.

As of 10th June, <BR><BR>Market Cap: Ashok Leyland Ltd. has a market capitalization of 85,024.00 Cr, categorizing it as a Mid Cap company.<BR><BR>Recent Quarterly Performance: The sum of Net Sales for the latest 4 quarters is 56,362.08 Cr, while the sum of Net Profit for the same period is 3,471.03 Cr.<BR><BR>Balance Sheet Snapshot: The reporting period for the latest annual data is March 2025. Shareholder's Funds stand at 12,232.09 Cr, and Total Assets are valued at 81,546.31 Cr.

Who are in the management team of Ashok Leyland?

The management team of Ashok Leyland includes D G Hinduja (Executive Chairman), Shenu Agarwal (Managing Director & CEO), Gopal Mahadevan (Whole Time Director & CFO), and N Ramanathan (Company Secretary). The board also features several non-executive and independent directors, contributing diverse expertise to the company.

The management team of Ashok Leyland includes the following key individuals:<BR><BR>1. **D G Hinduja** - Executive Chairman<BR>2. **Shenu Agarwal** - Managing Director & CEO<BR>3. **Gopal Mahadevan** - Whole Time Director & CFO<BR>4. **N Ramanathan** - Company Secretary & Compliance Officer<BR><BR>Additionally, the board features several non-executive and independent directors, including:<BR><BR>- **Jean Brunol**<BR>- **Sanjay K Asher**<BR>- **Andreas H Biagosch**<BR>- **Manisha Girotra**<BR>- **Jose Maria Alapont**<BR>- **Saugata Gupta**<BR>- **C Bhaktavatsala Rao** (Non-Exec & Non-Independent Director)<BR>- **Shom Hinduja** (Non-Exec & Non-Independent Director)<BR><BR>This diverse team brings a wealth of experience and expertise to the company.

Who are the peers of the Ashok Leyland?

Ashok Leyland's peers include TVS Motor Co., Hyundai Motor I, Tata Motors PVeh, Hero MotoCorp, Ather Energy, Escorts Kubota, Force Motors, Ola Electric, and BEML Ltd. In terms of management risk, growth, and capital structure, Hyundai Motor I and Hero MotoCorp show excellent performance, while Ashok Leyland has good management risk and a 1-year return of 16.29%.

Peers: The peers of Ashok Leyland are TVS Motor Co., Hyundai Motor I, Tata Motors PVeh, Hero MotoCorp, Ather Energy, Escorts Kubota, Force Motors, Ola Electric, and BEML Ltd.<BR><BR>Quality Snapshot: Excellent management risk is observed at Hyundai Motor I and Hero MotoCorp, while Good management risk is found at TVS Motor Co., Tata Motors PVeh, Ashok Leyland, Escorts Kubota, and Force Motors, and the rest. Below Average management risk is noted at Ather Energy and Ola Electric, while Average management risk is seen at BEML Ltd. Excellent growth is reported at Hyundai Motor I and Ather Energy, while Ashok Leyland and Hero MotoCorp show Excellent growth, and the rest. Below Average growth is found at Tata Motors PVeh, Escorts Kubota, and Ola Electric, while Average growth is noted at Ather Energy. Below Average capital structure is observed at Ashok Leyland, Ather Energy, and Ola Electric, while Average capital structure is found at Tata Motors PVeh and Force Motors, and the rest. Excellent capital structure is noted at Hyundai Motor I and Escorts Kubota.<BR><BR>Return Snapshot: Ather Energy has the highest 1-year return at 232.97%, while Tata Motors PVeh has the lowest at -16.93%. Ashok Leyland's 1-year return is 16.29%, which is significantly higher than Tata Motors PVeh but lower than Ather Energy. Additionally, the six-month return is negative for Hyundai Motor I, Escorts Kubota, and Force Motors.

Should I buy, sell or hold Ashok Leyland Ltd.?

Are Ashok Leyland Ltd. latest results good or bad?

Ashok Leyland Ltd.'s latest results show strong revenue growth, achieving ₹17,246.44 crores in Q4 FY26, a 17.36% increase year-on-year. However, profitability concerns arise from declining operating margins and a high debt-to-equity ratio, indicating potential financial stability challenges.

Ashok Leyland Ltd.'s latest results present a mixed picture. On one hand, the company achieved its highest-ever quarterly revenue of ₹17,246.44 crores in Q4 FY26, marking a significant 17.36% increase year-on-year and a 16.29% rise sequentially. This strong revenue growth reflects robust demand in the commercial vehicle sector, particularly in medium and heavy vehicles.<BR><BR>However, there are concerns regarding profitability and financial health. The net profit for the quarter was ₹1,290.70 crores, which, while representing a 14.21% increase year-on-year, shows a decline compared to the previous year's growth rate. Additionally, the operating margin decreased to 19.30%, down 113 basis points from the same quarter last year, indicating persistent cost pressures.<BR><BR>Moreover, the company's debt-to-equity ratio remains high at 3.57 times, raising concerns about financial flexibility and the ability to manage debt in a competitive environment. The interest coverage ratio is also weak, averaging just 1.83 times, which could pose challenges in servicing debt obligations, especially in a rising interest rate environment.<BR><BR>In summary, while Ashok Leyland's revenue growth is commendable, the ongoing margin pressures and high leverage present significant challenges that could impact its financial stability moving forward. Thus, the results can be seen as good in terms of revenue but concerning when considering profitability and debt levels.

When is the next results date for Ashok Leyland Ltd.?

The next results date for Ashok Leyland Ltd. is 28 May 2026.

The next results date for Ashok Leyland Ltd. is scheduled for 28 May 2026.

Is Ashok Leyland overvalued or undervalued?

As of November 27, 2025, Ashok Leyland is considered overvalued with a PE ratio of 27.83 and an EV to EBITDA of 13.96, despite a strong year-to-date return of 44.87%, indicating limited upside potential compared to its peers.

As of 27 November 2025, Ashok Leyland's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 27.83, an EV to EBITDA of 13.96, and a ROE of 26.79%. <BR><BR>In comparison with peers, Force Motors is rated attractive with a PE of 27.65, while SML Mahindra is also classified as expensive with a PE of 30.85. Despite Ashok Leyland's strong performance, reflected in a year-to-date return of 44.87% compared to the Sensex's 9.70%, the current valuation suggests that the stock may not offer further upside potential at this price point.

How has been the historical performance of Ashok Leyland?

Ashok Leyland has shown significant growth in net sales and profitability from March 2021 to March 2025, with net sales rising from 19,454.10 Cr to 48,535.14 Cr and profit after tax recovering from a loss of 292.97 Cr to a profit of 3,351.21 Cr. The company also improved its operating profit margin from 10.59% to 19.05% during this period.

Answer:<BR>The historical performance of Ashok Leyland shows a significant upward trend in net sales and profitability over the past few years, culminating in the fiscal year ending March 2025.<BR><BR>Breakdown:<BR>Ashok Leyland's net sales have increased from 19,454.10 Cr in March 2021 to 48,535.14 Cr in March 2025, reflecting a strong growth trajectory. Total operating income has followed a similar pattern, rising from 26,237.15 Cr in March 2022 to 48,535.14 Cr in March 2025. Despite fluctuations in raw material costs, which peaked at 28,272.18 Cr in March 2023, the company managed to maintain a healthy operating profit margin, which improved from 10.59% in March 2022 to 19.05% in March 2025. Profit before tax also saw a remarkable recovery, moving from a loss of 207.11 Cr in March 2022 to a profit of 4,564.75 Cr in March 2025. Consequently, profit after tax surged from a loss of 292.97 Cr in March 2022 to 3,351.21 Cr in March 2025. The company's total assets grew from 38,119.15 Cr in March 2020 to 81,546.31 Cr in March 2025, while total liabilities increased from 38,119.15 Cr to 81,546.31 Cr in the same period, indicating a balanced growth in both assets and liabilities. Cash flow from operating activities improved significantly, turning positive at 128.00 Cr in March 2025 after a series of negative cash flows in previous years. Overall, Ashok Leyland's financial performance demonstrates a robust recovery and growth in both revenue and profitability metrics over the analyzed period.

Has Ashok Leyland declared dividend?

Yes, Ashok Leyland has declared a dividend of 100%, amounting to ₹4.25 per share, with an ex-date of November 18, 2025. The company has shown strong total returns across various periods, with a 5-year total return of 259.49%.

Ashok Leyland Ltd. has declared a dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 100%<BR>- Amount per share: 4.25<BR>- Ex-date: 18 Nov 25<BR><BR>Dividend Yield: 2.08%.<BR><BR>Total Returns by Period:<BR>In the 3 months period, Ashok Leyland experienced a price return of 21.57%, a dividend return of 0.76%, resulting in a total return of 22.33%.<BR><BR>Over the 6 months period, the company achieved a price return of 26.36%, a dividend return of 4.35%, leading to a total return of 30.71%.<BR><BR>In the 1 year period, Ashok Leyland saw a price return of 36.23%, a dividend return of 4.74%, culminating in a total return of 40.97%.<BR><BR>For the 2 years period, the price return was 70.5%, with a dividend return of 13.63%, resulting in a total return of 84.13%.<BR><BR>During the 3 years period, the company recorded a price return of 94.04%, a dividend return of 19.89%, which gave a total return of 113.93%.<BR><BR>In the 4 years period, Ashok Leyland had a price return of 103.64%, a dividend return of 26.50%, leading to a total return of 130.14%.<BR><BR>Lastly, over the 5 years period, the company achieved a price return of 224.93%, with a dividend return of 34.56%, resulting in a total return of 259.49%.<BR><BR>Overall, Ashok Leyland has declared a significant dividend and demonstrated strong total returns across various periods, indicating a positive performance for investors.

Is Ashok Leyland technically bullish or bearish?

As of 27 October 2025, the market trend is bullish, supported by strong MACD and moving averages, although a mildly bearish KST signal on the monthly tempers the outlook.

As of 27 October 2025, the technical trend has changed from mildly bullish to bullish. The current stance is bullish with strong indicators supporting this view. The MACD is bullish on both the weekly and monthly time frames, and the moving averages on the daily chart also indicate bullish momentum. The Bollinger Bands are bullish on the weekly and mildly bullish on the monthly, suggesting price strength. However, the KST shows a mildly bearish signal on the monthly, which slightly tempers the overall bullish outlook. The Dow Theory indicates a mildly bullish stance on the weekly but no trend on the monthly. Overall, the strength of the bullish trend is reinforced by recent price action, with today's high surpassing the previous close and a notable return compared to the Sensex over various periods.

Who are the top shareholders of the Ashok Leyland?

The top shareholders of Ashok Leyland include Hinduja Automotive Limited as the largest promoter with 35.0%, followed by foreign institutional investors at 23.5%, mutual funds at 7.29%, and individual investors holding 9.56%, with the Government of Singapore as the highest public shareholder at 3.11%. The ownership structure shows a significant presence of both promoters and institutional investors.

The top shareholders of Ashok Leyland include a mix of promoters, institutional investors, and individual shareholders. The majority of the shares are held by promoters, with Hinduja Automotive Limited being the largest promoter, holding 35.0% of the company. <BR><BR>In terms of institutional investors, mutual funds hold 7.29% through 27 schemes, while foreign institutional investors (FIIs) account for 23.5% of the shares, represented by 660 FIIs. The highest public shareholder is the Government of Singapore, which holds 3.11%. Individual investors collectively own 9.56% of the company. <BR><BR>Overall, the ownership structure reflects a strong presence of both promoter and institutional holdings.

What is the bonus history of Ashok Leyland?

Ashok Leyland has a history of issuing bonuses, with the most recent being a 1:1 bonus announced on July 16, 2025, and a previous 1:1 bonus on August 2, 2011. This reflects the company's strategy to reward its shareholders.

Ashok Leyland has a notable bonus history. The most recent bonus issue was a 1:1 bonus announced with an ex-date of July 16, 2025. Prior to this, the company issued a 1:1 bonus on August 2, 2011, with a record date of August 3, 2011. This consistent approach to bonus issues reflects the company's strategy to reward shareholders. If you have any more questions about Ashok Leyland or need further details, feel free to ask!