Widely read:
Adobe Stock
Ashok Leyland’s share price is cruising around Rs 252. Not racing, not stalling, just cruising. And that’s interesting, given all the noise around it. The company just got shareholder approval for a 1:1 bonus, set the record date for July 16, and technical analysts are flashing bullish signals. Yet, the stock hasn’t taken off. What gives?
Let’s break it down.
What’s happening now
- Bonus shares incoming: Shareholders gave a big thumbs-up (96.8 per cent approval) to the 1:1 bonus issue. Record date? July 16. Allotment and listing? By July 18.
- Q1 sales were a mixed bag: In June, overall sales rose 3 per cent YoY. Bus sales jumped 42 per cent, light commercial vehicles were up 2 per cent, but truck sales dipped 12 per cent. It’s not a clean sweep, but it’s not bad either.
- Flat price action: Despite all this, the stock’s up just 0.4 per cent this week. It touched Rs 264 recently but has cooled since. So, while momentum is building, it’s not exploding, yet.
About the company
You’ve seen its trucks on highways, buses in cities and even military vehicles on the news. Ashok Leyland, part of the Hinduja Group, is India’s second-largest commercial vehicle maker and a global top-three bus manufacturer. From diesel trucks to electric buses and defence wheels, it builds the backbone of Indian mobility.
Here’s a summary of its fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 73,677 crore |
| P/E ratio | 23.7 |
| P/B ratio | 6 |
| Book value | Rs 41.7 |
| EPS | Rs 10.6 |
| ROE | 30.9 per cent |
| ROCE | 15.9 per cent |
| Dividend yield | 2.5 per cent |
Value Research Online ratings
- Overall: 2/5
- Quality: 3/10
- Growth: 5/10
- Valuation: 3/10
- Momentum: 7/10
The takeaway
Ashok Leyland’s engine is humming. A juicy bonus issue, bullish charts, and steady (if mixed) sales are keeping it in gear. But with the stock already near its highs, fresh triggers are needed to keep the rally alive.
Serious about wealth? So are we.
Join thousands of smart investors who rely on Value Research Stock Advisor for expert-picked stocks, time-tested strategies and long-term discipline.
Stop guessing. Start growing. Check it out now: Value Research Stock Advisor.
Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
For grievances: [email protected]
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
