Ashok Leyland Ltd.
NSE: ASHOKLEYAshok Leyland Ltd.: A 30-second snapshot
Ashok Leyland trades at ₹166.18, above both its 50-DMA (₹155.21) and 200-DMA (₹164.73), up 38.01% over the past year but 21.54% below its 52-week high. Trailing PE is 28.12x (forward 20.46x) against an ROE of 21.64% and profit margin of 6.16%, while free cash flow was positive in 0 of tracked years and debt-to-equity runs near 3.45x with a rising trend.
P/E
28.1
Forward P/E
20.5
ROE
+21.6%
Debt / Equity
344.74
Profit Margin
+6.2%
Div. Yield
+2.2%
5Y ROE > 15%
3/5
5Y FCF > 0
0/5
Quality
53/100
News
8 headlines · 4 positive · 1 negative
Ashok Leyland Secures ₹222.65 Crore Settlement as Tribunal Rejects DTC's ₹136 Crore Counterclaim - Sahi
Sahi
Ashok Leyland Partners UCO Bank To Offer Financing for Commercial Vehicles - HDFC Sky
HDFC Sky
M&HCV industry to grow 5–7% in FY27 on fleet replacement, infrastructure push: Ashok Leyland - Business Today
Business Today
Expect Commercial Vehicle Industry To Grow in Single Digit This Fiscal: Ashok Leyland - HDFC Sky
HDFC Sky
Ashok Leyland Partners with Rosmerta Recycling to Boost Commercial Vehicle Scrapping - HDFC Sky
HDFC Sky
Recent context
- ·Ashok Leyland secured a ₹222.65 crore tribunal settlement rejecting DTC's ₹136 crore counterclaim (Sahi, July 13, 2026).
- ·The company announced a commercial-vehicle financing partnership with UCO Bank (July 28, 2026) and a vehicle-scrapping partnership with Rosmerta Recycling (July 6, 2026).
- ·Management commentary cited single-digit CV industry growth this fiscal alongside a separate outlook for 5-7% M&HCV industry growth in FY27 (HDFC Sky, Business Today, July 2026); on-target coverage skewed positive (4 of 6 items), after excluding two off-target competitor stories about Maruti Suzuki and M&M.
Strengths
- +ROE of 21.64% alongside a 5-year revenue CAGR of 17.4% and earnings CAGR of 24.5%.
- +Trading above both the 50-DMA (₹155.21) and 200-DMA (₹164.73), with a 38.01% gain over the past year.
- +PE of 28.12x (forward 20.46x) is the lowest among its 6-stock sector cohort on this metric.
- +Mean analyst rating of 1.9697 across 31 analysts (1-5 scale, lower = more constructive); dividend yield of 2.21%.
Weaknesses
- −Free cash flow was positive in 0 of tracked years despite double-digit revenue and earnings growth.
- −Debt-to-equity of roughly 3.45x with a rising trend; consolidation of financing arm Hinduja Leyland Finance elevates this figure relative to a pure vehicle OEM.
- −Quality score of 37 ranks 5th of 6 sector peers, and ROE has cleared 15% in only 3 of the tracked years (consistency score 50).
- −Profit margin of 6.16%, and the stock sits 21.54% below its 52-week high despite the one-year gain.
Open questions
- ?What is driving zero years of positive free cash flow despite a 24.5% five-year earnings CAGR — capex intensity, working-capital cycles, or financing-arm consolidation?
- ?How does consolidating Hinduja Leyland Finance affect the comparability of the roughly 3.45x debt-to-equity figure against pure-play commercial-vehicle peers?
- ?What accounts for the stock trading 21.54% below its 52-week high even while it sits above both the 50- and 200-day moving averages?
- ?Does the sector peer set (capital-goods/EPC names) used for the PE and quality-score rankings meaningfully reflect Ashok Leyland's competitive position as a commercial-vehicle OEM?
Peer comparison: Infrastructure
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ASHOKLEY | Ashok Leyland Ltd.You're viewing | 28.1 | +21.6% | 37 |
| Industry avg | across 5 peers | 70.3 | +29.5% | 47 |
| CUMMINSIND | Cummins India Ltd. | 64.7 | +29.5% | 65 |
| BEL | Bharat Electronics Ltd. | 46.2 | — | 50 |
| ABB | ABB India Ltd. | 98.9 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 109.2 | — | 38 |
| LT | Larsen & Toubro Ltd. | 32.7 | — | 37 |
Technical state
Current price
₹166.18
SMA 50
₹155.21
SMA 200
₹164.73
RSI (14)
65.2 (neutral)
From 52w high
-21.5%
1Y return
+38.0%
3M return
+0.7%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highFree cash flow was positive in 0 of tracked years despite a 5-year revenue CAGR of 17.4% and earnings CAGR of 24.5%; income-statement growth has not translated into cash generation, and ROE has cleared 15% in only 3 of the tracked years (consistency score 50).
- mediumDebt-to-equity is approximately 3.45x (raw Yahoo figure of 344.737 is percent-scaled and restated here as an x-multiple), with a rising debt trend. The company consolidates its financing arm, Hinduja Leyland Finance, which structurally elevates reported leverage versus a pure commercial-vehicle OEM.
- mediumQuality score of 37 ranks 5th of 6 peers in its sector cohort (BEL, LT, ABB, CGPOWER, CUMMINSIND); profit margin stands at 6.16%.
- lowStock trades 21.54% below its 52-week high even as it sits above both the 50-DMA (₹155.21) and 200-DMA (₹164.73) and is up 38.01% over the past year, indicating the annual gain includes a pullback from a higher peak.
- lowNews sentiment sample (8 raw items) includes off-target competitor stories (Maruti Suzuki, M&M) excluded from this read, leaving an effective on-target sample of roughly 6 items. Separately, the sector peer set used for PE/quality-score ranking (LT, ABB, BEL, CGPOWER, CUMMINSIND) skews toward capital-goods/EPC names rather than automobile OEMs, limiting direct comparability.
Cross-section contradictions
- A 5-year revenue CAGR of 17.4% and earnings CAGR of 24.5% suggest a strong growth trajectory, yet free cash flow was positive in 0 of tracked years and ROE cleared 15% in only 3 of the tracked years — the income-statement growth story has not been matched by cash generation or consistency.
- Mean analyst rating of 1.9697 across 31 analysts (1-5 scale, lower = more constructive) sits toward the constructive end of the scale, while the stock's own quality score ranks 5th of 6 peers in its sector cohort.
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 12 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Aug 2026 · rotates through NIFTY 500 every ~5 days