Update shared on 29 Oct 2025
Fair value Decreased 0.17%Analysts have slightly reduced their price target for Ashok Leyland, lowering the fair value estimate by ₹0.25 to ₹144.04. They cited ongoing demand challenges but expressed confidence in the company’s ability to benefit from market improvements and new innovations in the coming quarters.
Analyst Commentary
Bullish Takeaways- Analysts point to the company’s strong track record and effective management as supportive of long-term growth prospects.
- There is confidence in Ashok Leyland's healthy pipeline of new products and innovations, which positions the company well to capitalize on shifting market trends.
- Expectations remain that, despite recent demand softness, business conditions will improve in upcoming quarters and could offer potential for operational recovery and margin expansion.
- Some analysts continue to cite persistent demand challenges and external pressures, such as inflation, as risks for near-term earnings performance.
- Recent reductions in price targets reflect a cautious approach to valuation in light of these current market headwinds.
- There is a need for demonstrated improvement in financial results before more aggressive upward revisions can be justified.
What's in the News
- Ashok Leyland wins order to deliver 1,937 BS VI diesel passenger buses and chassis to Tamil Nadu State Transport Undertakings, valued at INR 6,687.6 million. Delivery is scheduled between October 2025 and January 2027. (Key Developments)
- Board meeting scheduled on November 12, 2025 to consider and approve standalone and consolidated un-audited financial results for the quarter and half year ended September 30, 2025. (Key Developments)
- The company plans significant investment in the development and manufacturing of next-generation batteries for both automotive and non-automotive applications and has entered an exclusive partnership with CALB Group to advance its electrification roadmap. (Key Developments)
- Special shareholders meeting on October 5, 2025 to consider the appointment of Ms. Geeta Mathur and Mr. Sridharan Kesavan as Non-Executive Independent Directors. (Key Developments)
- Board meeting on August 14, 2025 considers financial results, new equity investments in Vishwa Buses and Coaches Ltd and Ohm Global Mobility Private Limited, and approval to terminate the ESOP Plan 2018. (Key Developments)
Valuation Changes
- Fair Value Estimate has decreased slightly from ₹144.29 to ₹144.04.
- Discount Rate has declined marginally from 17.18% to 17.08%.
- Revenue Growth projection has moderated further, changing from -0.11% to -0.12%.
- Net Profit Margin estimate remains stable, with a minor decrease from 9.06% to 9.06%.
- Future P/E Ratio estimate has edged down from 30.41x to 30.31x.
Disclaimer
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