Update shared on 12 Nov 2025
Fair value Increased 0.32%Analysts have slightly raised their price target for Ashok Leyland from ₹144.04 to ₹144.50. They cited expectations of improving market conditions and a robust product pipeline as key factors supporting this modest increase.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight Ashok Leyland’s robust track record and effective management, which help strengthen its competitive position within the industry.
- There is optimism around the company's healthy product pipeline. Multiple new innovations are expected to support future growth and capitalize on evolving market trends.
- Analysts see prospects for improved market conditions in upcoming quarters. This could potentially lead to a rebound in earnings performance.
- The broader recovery in demand may allow Ashok Leyland to achieve better operational leverage and improve its margin profile. This would contribute positively to its valuation outlook.
- Some analysts remain cautious due to the impact of recent reduced demand, which has weighed on the company's earnings performance.
- Inflationary pressures continue to present a risk to margins and could delay a meaningful recovery in profitability if cost pressures persist.
- There is a degree of execution risk tied to the successful launch and adoption of new products. This could influence growth expectations.
What's in the News
- The board of Ashok Leyland is scheduled to meet on November 12, 2025, to consider and approve the company's standalone and consolidated un-audited financial results for the quarter and half year ended September 30, 2025. The board will also consider a proposal for declaring an interim dividend. (Board Meeting)
- Ashok Leyland has secured an order for 1,937 buses from the Institute of Road Transport, Tamil Nadu. Deliveries are expected between October 2025 and January 2027, with a contract value of INR 6,687.6 million. (Client Announcement)
- A special shareholders meeting on October 5, 2025, will vote on appointing Ms. Geeta Mathur as a Non-Executive Independent Director for five years and Mr. Sridharan Kesavan for three years. (Shareholders Meeting)
- The company has announced plans to invest in the development and manufacturing of next-generation batteries for automotive, non-automotive, and energy storage applications. It has entered a long-term partnership with CALB Group to support this initiative. (Client Announcement)
Valuation Changes
- Consensus Analyst Price Target: Increased slightly from ₹144.04 to ₹144.50. This reflects a modest upward revision in expectations.
- Discount Rate: Risen marginally from 17.08% to 17.15%. This suggests a slightly higher required rate of return.
- Revenue Growth: The decline eased, with negative revenue growth improving from -0.12% to -0.10%.
- Net Profit Margin: Edged down minimally from 9.06% to 9.05%, indicating stable profitability levels.
- Future P/E: Moved up slightly from 30.31x to 30.46x. This implies a minor increase in future earnings expectations relative to the current price.
Disclaimer
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