Loading...
Back to narrative

ASHOKLEY: Bus Order Wins And Dividend Payout Will Support Steady Near-Term Outlook

Near-Term Demand Weakness Will Be Offset By New Product Momentum

ASHOKLEY logo
ASHOKLEY
AnalystConsensusTarget
Not Invested
Published 27 Nov 2024

Update shared on 11 Dec 2025

Fair value Increased 0.68%
Previous
n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
61.9%
7D
6.1%

Analysts have nudged their fair value estimate for Ashok Leyland slightly higher, from ₹155.08 to ₹156.14, citing expectations of stronger revenue growth and marginally improved profit margins supported by a stable earnings multiple.

What's in the News

  • Board meeting scheduled for November 25, 2025 to consider a scheme of merger by absorption of Hinduja Leyland Finance Limited into Nirmal Diesel Limited, subject to regulatory and other approvals (company filing)
  • Board meeting on November 12, 2025 to review standalone and consolidated unaudited financial results for the quarter and half year ended September 30, 2025, and to consider an interim dividend for FY 2025-26 (company filing)
  • Company secured a major order for 1,937 AIS 153 compliant BS VI diesel buses from Tamil Nadu State Transport Undertakings, with a net contract value of INR 6,687.6 million and deliveries scheduled between October 2025 and January 2027 (company filing)
  • Board declared an interim dividend of INR 1 per equity share for FY 2025-26, payable on or before December 11, 2025, with November 18, 2025 as the record date (company filing)

Valuation Changes

  • Fair Value Estimate has risen slightly from ₹155.08 to ₹156.14 per share, reflecting modestly stronger fundamentals.
  • Discount Rate has fallen marginally from 17.33 percent to 17.17 percent, implying a slightly lower perceived risk or cost of capital.
  • Revenue Growth assumption has increased meaningfully from about 26.8 percent to 31.9 percent, indicating improved expectations for top line expansion.
  • Net Profit Margin forecast has inched up from 9.43 percent to 9.43 percent, suggesting a very small anticipated improvement in profitability.
  • Future P/E multiple has edged up slightly from 29.90x to 29.92x, keeping the valuation framework broadly stable.

Have other thoughts on Ashok Leyland?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.