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Ashok Leyland Limited (IN:ASHOKLEY)
:ASHOKLEY
India Market
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Ashok Leyland Limited (ASHOKLEY) AI Stock Analysis

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IN:ASHOKLEY

Ashok Leyland Limited

(ASHOKLEY)

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Neutral 53 (OpenAI - Gpt-5.6Sol)
Rating:53Neutral
Price Target:
₹172.00
▲(13.79% Upside)
Action:Reiterated
Date:06/13/26
The score is primarily held back by weak cash flow consistency and high leverage, despite strong recent profitability on the income statement. Technicals also remain soft with the stock below key moving averages and a negative MACD, while valuation is mixed (moderate P/E supported by a ~2.3% dividend yield).
Positive Factors
Revenue and margin recovery
Consistent revenue growth alongside materially improved operating profitability indicates stronger commercial execution and demand across the vehicle portfolio. Sustained margins provide greater capacity to reinvest in products, distribution and service support while strengthening earnings resilience over the next several quarters.
Negative Factors
High financial leverage
A debt-heavy capital structure reduces financial flexibility and can amplify downside when commercial vehicle demand or margins weaken. Higher leverage also increases the importance of maintaining earnings and refinancing access, potentially limiting funds available for expansion or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin recovery
Consistent revenue growth alongside materially improved operating profitability indicates stronger commercial execution and demand across the vehicle portfolio. Sustained margins provide greater capacity to reinvest in products, distribution and service support while strengthening earnings resilience over the next several quarters.
Read all positive factors

Ashok Leyland Limited (ASHOKLEY) vs. iShares MSCI India ETF (INDA)

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 is solid (Score 78) with consistent revenue growth and much improved profitability, but overall financial quality is constrained by a highly leveraged balance sheet (Score 48, debt/equity ~4.5x in 2026) and weak/volatile cash generation (Cash Flow Score 22 with negative operating cash flow in most years and negative free cash flow in 5 of 6 periods).
Income Statement
78
Positive
Balance Sheet
48
Neutral
Cash Flow
22
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue574.89B560.76B483.42B455.17B414.88B261.10B
Gross Profit228.90B222.20B185.60B161.71B125.53B84.23B
EBITDA115.45B109.97B96.13B80.16B52.59B25.35B
Net Income34.76B34.71B31.07B24.84B12.39B-3.59B
Balance Sheet
Total Assets0.001.01T817.15B676.60B547.46B436.01B
Cash, Cash Equivalents and Short-Term Investments170.06B170.79B118.61B68.62B61.47B44.78B
Total Debt0.00639.36B499.62B408.02B311.61B241.45B
Total Liabilities-185.46B824.95B658.70B558.46B439.50B350.11B
Stockholders Equity185.46B142.42B122.32B90.05B85.52B73.04B
Cash Flow
Free Cash Flow-64.68B-78.40B-15.20B-73.92B-54.28B23.36B
Operating Cash Flow-51.48B-48.95B1.28B-62.58B-44.99B28.45B
Investing Cash Flow4.33B-70.16B-57.58B11.35B-29.35B-19.17B
Financing Cash Flow28.77B116.17B69.58B84.32B72.81B-3.78B

Ashok Leyland Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price151.15
Price Trends
50DMA
166.63
Negative
100DMA
161.43
Positive
200DMA
169.32
Negative
Market Momentum
MACD
-0.15
Positive
RSI
41.75
Neutral
STOCH
17.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASHOKLEY, the sentiment is Neutral. The current price of 151.15 is below the 20-day moving average (MA) of 172.50, below the 50-day MA of 166.63, and below the 200-day MA of 169.32, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 41.75 is Neutral, neither overbought nor oversold. The STOCH value of 17.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ASHOKLEY.

Ashok Leyland Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
₹325.41B23.071.76%17.98%-41.45%
72
Outperform
₹13.20B33.860.17%-1.48%-18.51%
65
Neutral
₹35.43B32.090.49%17.02%-5.12%
57
Neutral
₹6.73B27.2911.14%-8.73%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
53
Neutral
₹976.82B27.662.13%16.50%8.37%
46
Neutral
₹95.53B-16.948.82%6.28%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ASHOKLEY
Ashok Leyland Limited
163.95
32.99
25.19%
IN:EIMCOELECO
Eimco Elecon (India) Ltd.
2,322.95
131.93
6.02%
IN:ESCORTS
Escorts Kubota Limited
2,900.15
-728.94
-20.09%
IN:HMT
HMT Ltd.
63.32
-0.38
-0.60%
IN:VSTTILLERS
VST Tillers Tractors Limited
4,039.90
-1,163.00
-22.35%
IN:INDOFARM
Indo Farm Equipment Ltd.
141.95
-115.45
-44.85%

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.Date of analysis: Jun 13, 2026