Ashok Leyland Limited

Ashok Leyland Limited (ASHOKLEY) is a mid-cap Capital Goods company valued at ₹87,491 crore operating in Commercial Vehicles on the NSE and BSE.

Recent price move

Ashok Leyland Limited last traded at ₹148.91, modestly up 0.49% on the day.

Recent developments

On 2026-10-07, auto stocks including Ashok Leyland dropped up to 3% as the RBI raised the repo rate and shifted to calibrated tightening. On 2026-10-02, the company won a large electric bus order, giving it a significant foothold in the market. On 2026-09-11, the company expanded its dealership network in Karnataka, adding a 12th Light Commercial Vehicle dealership in the state. On 2026-09-07, BofA highlighted potential in the Indian commercial vehicle market for Ashok Leyland.

Financial performance

The company's business is growing, with annual revenue rising 16.1% and net profit increasing 10.0% year-over-year. However, the net profit margin narrowed by 0.4 percentage points to 6.6%, while return on equity remained stable at 24.4%. The latest quarter saw revenue rise 11.6% compared to the same quarter a year earlier, but net profit only grew 1.5%, indicating margin pressures.

Valuation multiples

The stock trades at 25.2 times earnings, 6.86 times book value. It yields 2.1%.

Things to watch

The company has a high debt to equity ratio of 4.49, indicating a highly leveraged position. Promoter shares pledged account for 40.10% of their holding, which may signal liquidity concerns. The stock is 30.9% below its 52-week high, reflecting a significant drop from recent peak levels.

Where it stands

Ashok Leyland's business is growing with strong revenue expansion, but margin pressures and a high debt load are concerns. The stock is trading below its 52-week high, and the company's leverage remains elevated. The latest quarter showed modest profit growth, but the net margin contraction is a key factor to note.

Summarised by DocStoX's model on 2026-10-17 from company filings, exchange data and news. This is a factual summary, not a rating or a recommendation. Informational only, not investment advice. Consult a SEBI-registered adviser before investing.