Ashok Leyland Ltd.
NSE: ASHOKLEYAshok Leyland Ltd.: A 30-second snapshot
Ashok Leyland (₹149.78) is a large-cap commercial vehicle manufacturer that reported record FY26 revenue and profit, yet the stock trades 28.74% below its level of 3 months ago and below both its 50-DMA (₹164.18) and 200-DMA (₹161.99). The 5-year earnings CAGR of 24.5% and a dividend yield of 2.25% coexist with a debt-to-equity of 344.74 and zero free-cash-flow years in the tracked period.
P/E
25.3
Forward P/E
18.3
ROE
+21.6%
Debt / Equity
344.74
Profit Margin
+6.2%
Div. Yield
+2.3%
5Y ROE > 15%
3/5
5Y FCF > 0
0/5
Quality
49/100
News
5 headlines · 4 positive · 0 negative
ASHOKLEY: Record FY 2026 results with all-time high revenue, profit, and strong demand outlook - TradingView
TradingView
ASHOKLEY: FY 2026 delivered record revenue and profit, with strong CV demand and resilient outlook - TradingView
TradingView
ASHOKLEY: FY26 saw record financial results, robust volume growth, and a strengthened cash position - TradingView
TradingView
Ashok Leyland To Begin In-House EV Battery Pack Production By FY28 - Autocar Professional
Autocar Professional
Ashok Leyland Ltd stock (INE208A01029): Share price dips 0.62% to 154.98 - AD HOC NEWS
AD HOC NEWS
Recent context
- ·Ashok Leyland reported FY26 all-time high revenue and profit (per May 28 2026 headlines), with management citing strong commercial vehicle demand and a resilient outlook.
- ·The company announced plans to begin in-house EV battery pack production by FY28, signalling a capex commitment toward electrification of its CV lineup.
- ·Despite the positive FY26 results news, the stock has declined approximately 28.74% over the 3 months preceding the draft date, with analyst mean rating of 1.91 across 33 analysts on a 1–5 scale where lower is more constructive.
Strengths
- +5-year earnings CAGR of 24.5% outpaces the 5-year revenue CAGR of 17.4%, suggesting operating leverage has improved over the cycle.
- +Forward PE of 18.25 is a 28% compression from the trailing PE of 25.34, and is the lowest PE among the 6 Infrastructure-sector peers tracked (sector range: 25–116).
- +Dividend yield of 2.25% is present alongside reported FY26 record results, including all-time high revenue and profit per the most recent news headlines.
- +ROE of 21.64% for the current period exceeds the peer median, ranking 3rd of 6 among tracked Infrastructure peers (peer range: 16.95%–29.46%).
Weaknesses
- −Debt-to-equity of 344.74 is significantly elevated for a non-financial industrial; the debt trend is rising, increasing vulnerability to interest rate or demand cycle stress.
- −Free cash flow was positive in 0 of the tracked years, raising questions about whether reported profits are being converted into distributable cash; consistency score stands at 50.
- −Quality score of 37 ranks 5th of 6 in the Infrastructure peer group, and profit margin of 6.16% leaves limited buffer against cost or demand shocks.
- −Price is below both the 50-DMA (₹164.18) and 200-DMA (₹161.99) with a 30.47% drawdown from the 52-week high and the nearest support at ₹148.76, approximately 0.7% below the current price.
Open questions
- ?Does the D/E of 344.74 reflect operational lease obligations, vehicle financing subsidiaries, or core manufacturing debt — and how does each component trend over the past 3 years?
- ?The 5-year earnings CAGR of 24.5% stands against zero FCF-positive years in the tracked period; what explains the divergence between reported earnings and cash generation?
- ?Ashok Leyland trades at a forward PE of 18.25 versus peers ranging from 34 to 116 — does the valuation gap reflect a structural risk premium, a cyclical trough, or a sector classification mismatch?
- ?The EV battery pack production plan targets FY28; what is the expected capex quantum and how might it interact with an already elevated and rising debt level?
Peer comparison: Infrastructure
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ASHOKLEY | Ashok Leyland Ltd.You're viewing | 25.3 | +21.6% | 37 |
| Industry avg | across 5 peers | 72.4 | +23.4% | 47 |
| CUMMINSIND | Cummins India Ltd. | 66.6 | +29.5% | 69 |
| BEL | Bharat Electronics Ltd. | 49.1 | +27.6% | 49 |
| ABB | ABB India Ltd. | 95.9 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 116.0 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 34.3 | +16.9% | 24 |
Technical state
Current price
₹149.78
SMA 50
₹164.18
SMA 200
₹161.99
RSI (14)
38.5 (neutral)
From 52w high
-30.5%
1Y return
+24.9%
3M return
-28.7%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 344.74 is atypically elevated for a commercial vehicle manufacturer; the debt trend is rising, amplifying sensitivity to interest-rate moves and demand downturns. D/E at this level is more consistent with financial-sector balance sheets than industrials.
- highFree cash flow was positive in 0 of tracked years; consistency score of 50 and ROE exceeding 15% in only 3 of tracked years indicate that strong earnings-growth figures (5y CAGR 24.5%) have not translated into cash generation.
- mediumCurrent price of ₹149.78 is below both the 50-DMA (₹164.18) and 200-DMA (₹161.99). The stock is down 28.74% over the past 3 months and 30.47% from the 52-week high. Nearest support level is ₹148.76, approximately 0.7% below current price.
- mediumQuality score of 37 ranks 5th of 6 peers in the Infrastructure sector. Profit margin stands at 6.16%, and ROE has only cleared the 15% threshold in 3 of the tracked years despite a 5-year revenue CAGR of 17.4%.
- lowNews sample is limited to 5 articles, with 3 of the 4 positive items published on the same day (2026-05-28) covering the same FY26 results announcement; sentiment breadth is narrow and may not represent sustained coverage.
Cross-section contradictions
- News sentiment is positive (4 of 5 articles, covering FY26 record revenue and profit) yet the stock has declined 28.74% over the past 3 months and sits below both the 50-DMA and 200-DMA, suggesting the market has not responded constructively to the earnings news.
- 1-year price return of +24.87% is positive while the stock is simultaneously 30.47% below its 52-week high, indicating the annual gain was concentrated in an earlier sub-period and has since reversed sharply.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days