Ashok Leyland Ltd.
Infrastructure · NSE
52-week range
₹106 – ₹215
From 52w high
-21.8%
RSI (14)
48.9
vs SMA 50 / 200
↓ 50 · ↑ 200
Ashok Leyland is a major Indian commercial vehicle manufacturer trading at ₹168.57, below its 50-DMA of ₹176.15 but above its 200-DMA of ₹159.31, with a trailing PE of 29.97 and a forward PE of 22.71. Revenue has compounded at 23.6% over five years, though earnings growth lagged at 6.6% over the same period. The stock is 21.75% below its 52-week high after a sharp 3-month decline of 16.1%, even as the 1-year return remains +56.21%.
- ✓Revenue CAGR of 23.6% over 5 years signals robust top-line expansion in the commercial vehicle segment.
- ✓Forward PE of 22.71 is a notable compression from the trailing PE of 29.97, and is the lowest among the 6 tracked Infrastructure peers (BEL: 53.74, L&T: 34.04, ABB: 95.21, CGPOWER: 113.80, Cummins: 66.54), placing the stock at rank 1 of 6 on PE valuation within this peer set.
- ✓Dividend yield of 1.85% provides an income component alongside capital appreciation potential in the commercial vehicle cycle.
- ✓Mean analyst rating of 1.91 across 33 analysts (1–5 scale, lower = more constructive) reflects coverage concentration toward the constructive end of the scale.
- ✗Debt-to-equity of 327.89 is extremely elevated for an industrial manufacturer; rising debt trend and FCF positive in only 1 of tracked years raise questions about the sustainability of the capital structure.
- ✗Earnings growth of 6.6% over 5 years substantially trails revenue growth of 23.6%, indicating that margin compression or rising interest costs are absorbing top-line gains.
- ✗Quality score of 28 ranks 4th out of 6 peers in the Infrastructure sector; ROE exceeded 15% in only 2 of the tracked years, reflecting inconsistent capital efficiency.
- ✗Price has declined 16.1% over the past 3 months and sits 21.75% below the 52-week high, with the next identified support at ₹143.13 approximately 15% below the current price of ₹168.57.
- ·Q4 and Q3 FY2026 results coverage from Mint indicates earnings are under active market scrutiny, with the results period coinciding with the 3-month price decline.
- ·A MarketScreener piece dated 8 May 2026 titled Ashok Leyland Gears Up to Growth was the sole positively-coded headline in the 5-article sample, framing a growth narrative around recent results.
- ·Multiple financial media outlets ran trading-level commentary citing specific price levels for ASHOKLEY in late April and early May 2026, reflecting elevated short-term market interest in the stock around current price ranges.
- ?How much of the D/E ratio of 327.89 is attributable to vehicle financing or leasing subsidiaries, and how does that compare to peers with similar business structures?
- ?Does the divergence between 5-year revenue CAGR (23.6%) and earnings CAGR (6.6%) reflect a structural margin challenge or a cycle-specific input-cost event that may normalize?
- ?Given that the stock is above the 200-DMA but below the 50-DMA, what has driven the 3-month underperformance relative to the 1-year return, and is there a sector-wide or company-specific catalyst?
- ?With the forward PE of 22.71 at the low end of the Infrastructure peer group, what assumptions about earnings recovery or margin expansion are embedded in that implied valuation?
PE
30.0
Forward PE
22.7
ROE
—
Profit margin
+6.2%
D/E
327.89
Dividend yield
+1.9%
Quality score
28/100
ROE 5y above 15%
2/5 yrs
FCF 5y positive
1/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.