Ashok Leyland Share Price Today: Market Overview and Investment Insights
Current Share Price Snapshot
As of May 26, 2025, Ashok Leyland Ltd. is trading at ₹221.80 on the NSE, reflecting a modest daily decline of approximately 0.39%. The stock's 52-week range spans from ₹157.65 to ₹264.70, indicating a significant upside potential from current levels. The company's market capitalization stands at ₹61,652.39 crore, underscoring its substantial presence in the Indian automotive sector .
Financial Metrics
| Metric | Value |
|---|---|
| P/E Ratio | 21.77 |
| EPS (TTM) | ₹9.64 |
| P/B Ratio | 5.23 |
| Dividend Yield | 2.36% |
| Face Value | ₹1.00 |
| Beta (1 Year) | 1.54 |
| 1-Year Return | 22.64% |
| 3-Year Return | 111.58% |
| 5-Year Return | 194.63% |
These figures suggest a healthy valuation relative to earnings and book value, with a solid track record of returns over the past few years.
Recent Performance and Market Sentiment
Ashok Leyland's Q4 FY25 results have been a focal point for investors. The company reported a 38% year-on-year increase in standalone net profit, reaching ₹1,246 crore, with revenues rising by 6% to ₹11,907 crore. Despite these robust financials, the stock experienced a slight dip on May 26, 2025, closing at ₹221.80, down from the previous day's ₹226.45 .
Analyst sentiment remains predominantly positive. Refinitiv reports that 34 analysts maintain a "Buy" recommendation for the stock, with price targets ranging from ₹245 to ₹255 . This reflects confidence in Ashok Leyland's growth prospects, particularly in the commercial vehicle segment.
Investment Considerations
Positive Indicators
-
Strong Earnings Growth: The 38% YoY profit increase in Q4 FY25 highlights the company's operational efficiency and market demand.
-
Analyst Confidence: The consensus "Buy" ratings and upward price targets suggest sustained investor optimism.
-
Dividend Yield: A dividend yield of 2.36% provides an attractive income stream for investors.
Potential Risks
-
Commodity Price Fluctuations: Rising material costs could impact margins if not managed effectively.
-
Volume Variability: Sales volumes are susceptible to economic cycles and regulatory changes, which could affect performance.
Peer Comparison
| Company | Current Price (₹) | 1-Year Return (%) |
|---|---|---|
| Ashok Leyland | 221.80 | 22.64 |
| Tata Motors | 774.45 | -26.94 |
| Maruti Suzuki India | 11,631.60 | -0.95 |
| Force Motors | 450.05 | 20.80 |
| SML Isuzu | 1,100.00 | -32.97 |
Ashok Leyland's 1-year return of 22.64% outperforms several key peers, indicating strong relative performance in the sector.
Conclusion
Ashok Leyland presents a compelling investment opportunity, combining robust financial performance with a positive market outlook. While potential risks related to commodity prices and sales volumes exist, the company's strong earnings growth and analyst confidence provide a solid foundation for future performance. Investors considering exposure to the Indian automotive sector may find Ashok Leyland to be a favorable addition to their portfolios.
