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Ashok Leyland Limited
(ASHOKLEY)
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Rating:53Neutral
Price Target:
₹166.00
▲(9.82% Upside)
Action:Reiterated
Date:09/13/26
The score is primarily driven by improved profitability and margins, but it is meaningfully constrained by high leverage and consistently weak/negative free cash flow. Technically, the setup is also weak with bearish momentum, while valuation is only moderately supported by the dividend given the higher P/E.
Positive Factors
Revenue Growth
Consistent multi-year revenue growth indicates improving commercial vehicle demand and stronger business execution. Continued top-line expansion can support operating leverage, strengthen the installed customer base, and provide a durable foundation for earnings growth over the next several quarters.
Negative Factors
High Leverage
High leverage reduces financial flexibility and makes the company more sensitive to weaker commercial vehicle demand or margin pressure. A debt-heavy structure can also increase funding costs and constrain investment, dividends, or other capital allocation choices during a downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent multi-year revenue growth indicates improving commercial vehicle demand and stronger business execution. Continued top-line expansion can support operating leverage, strengthen the installed customer base, and provide a durable foundation for earnings growth over the next several quarters.
Read all positive factors
Ashok Leyland Limited (ASHOKLEY) vs. iShares MSCI India ETF (INDA)
Market Cap
₹963.02B
Dividend Yield2.13%
Average Volume (3M)972.47K
Price to Earnings (P/E)27.7
Beta (1Y)1.60
Revenue Growth16.50%
EPS Growth8.37%
CountryIN
Employees9,891
SectorGeneral
Sector StrengthN/A
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)5.92
Shares Outstanding5,873,854,500
10 Day Avg. Volume770,835
30 Day Avg. Volume972,467
Financial Highlights & Ratios
PEG Ratio2.15
Price to Book (P/B)6.15
Price to Sales (P/S)1.56
P/FCF Ratio-11.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹180.00Price Target Upside19.09% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)7.08
Revenue Forecast (FY)₹484.31B
Ashok Leyland Limited Business Overview & Revenue Model
Company Description
Ashok Leyland Limited, encompassing its various subsidiaries, stands as a prominent manufacturer and global seller of commercial vehicles, with significant operations in India. The company's extensive product portfolio includes a diverse array of ...
How the Company Makes Money
Ashok Leyland makes money primarily by selling commercial vehicles to customers such as fleet operators, transporters, government/state transport undertakings, and other institutional buyers. Its core revenue stream comes from vehicle sales (notab...
Ashok Leyland Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
48
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 574.89B | 560.76B | 483.42B | 455.17B | 414.88B | 261.10B |
| Gross Profit | 228.90B | 222.20B | 185.60B | 161.71B | 125.53B | 84.23B |
| EBITDA | 115.45B | 109.97B | 96.13B | 80.16B | 52.59B | 25.35B |
| Net Income | 34.76B | 34.71B | 31.07B | 24.84B | 12.39B | -3.59B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 1.01T | 817.15B | 676.60B | 547.46B | 436.01B |
| Cash, Cash Equivalents and Short-Term Investments | 170.06B | 170.79B | 118.61B | 68.62B | 61.47B | 44.78B |
| Total Debt | 0.00 | 639.36B | 499.62B | 408.02B | 311.61B | 241.45B |
| Total Liabilities | -185.46B | 824.95B | 658.70B | 558.46B | 439.50B | 350.11B |
| Stockholders Equity | 185.46B | 142.42B | 122.32B | 90.05B | 85.52B | 73.04B |
Cash Flow | ||||||
| Free Cash Flow | -64.68B | -78.40B | -15.20B | -73.92B | -54.28B | 23.36B |
| Operating Cash Flow | -51.48B | -48.95B | 1.28B | -62.58B | -44.99B | 28.45B |
| Investing Cash Flow | 4.33B | -70.16B | -57.58B | 11.35B | -29.35B | -19.17B |
| Financing Cash Flow | 28.77B | 116.17B | 69.58B | 84.32B | 72.81B | -3.78B |
Ashok Leyland Limited Technical Analysis
Negative
151.15
Price Trends
166.63
Negative
161.33
Positive
169.42
Negative
Market Momentum
-0.63
Positive
37.91
Neutral
17.42
Positive
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 151.15 is below the 20-day moving average (MA) of 172.11, below the 50-day MA of 166.63, and below the 200-day MA of 169.42, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 37.91 is Neutral, neither overbought nor oversold. The STOCH value of 17.42 is Positive, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ₹319.01B | 23.07 | ― | 1.76% | 17.98% | -41.45% | |
72 Outperform | ₹13.40B | 33.86 | ― | 0.17% | -1.48% | -18.51% | |
65 Neutral | ₹34.96B | 32.09 | ― | 0.50% | 17.02% | -5.12% | |
57 Neutral | ₹6.82B | 27.29 | ― | ― | 11.14% | -8.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ₹963.02B | 27.66 | ― | 2.13% | 16.50% | 8.37% | |
46 Neutral | ₹94.59B | -16.94 | ― | ― | 8.82% | 6.28% |
* General Sector Average
IN:ASHOKLEY
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25.38%
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Ashok Leyland Limited Corporate Events
Hinduja Leyland Finance Secures Creditor Approval on Key Resolution
Aug 3, 2026
Ashok Leyland Limited has informed the stock exchanges that its material subsidiary, Hinduja Leyland Finance Limited, has submitted a scrutinizer’s report to BSE regarding a meeting of its unsecured creditors convened by the National Company...
Ashok Leyland announces virtual 77th AGM, publishes statutory notices
Jul 3, 2026
Ashok Leyland has notified stock exchanges that it has published newspaper notices in English and Tamil announcing its 77th Annual General Meeting, which will be held on August 14, 2026 via video conferencing and other audio-visual means. The comp...
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.