NSEI:ASHOKLEY

Stock Analysis Report

Executive Summary

Ashok Leyland Limited, together with its subsidiaries, manufactures and sells commercial vehicles in India and internationally.

Snowflake

Fundamentals

Average dividend payer and slightly overvalued.

Risks

  • Ashok Leyland has significant price volatility in the past 3 months.
  • Ashok Leyland is not covered by any analysts.

Similar Companies

Share Price & News

How has Ashok Leyland's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.3%

NSEI:ASHOKLEY

-2.3%

IN Machinery

-2.1%

IN Market


1 Year Return

-53.4%

NSEI:ASHOKLEY

-29.0%

IN Machinery

-14.7%

IN Market

ASHOKLEY underperformed the Machinery industry which returned -28.8% over the past year.

ASHOKLEY underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

ASHOKLEYIndustryMarket
7 Day-5.3%-2.3%-2.1%
30 Day-16.7%-10.0%-3.9%
90 Day-35.8%-20.2%-10.1%
1 Year-51.5%-53.4%-27.8%-29.0%-12.9%-14.7%
3 Year-26.1%-31.3%-5.7%-9.3%17.7%11.5%
5 Year81.0%65.3%33.2%25.8%35.4%22.5%

Price Volatility Vs. Market

How volatile is Ashok Leyland's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ashok Leyland undervalued based on future cash flows and its price relative to the stock market?

9.4x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ashok Leyland's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ashok Leyland's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ashok Leyland is good value based on earnings compared to the IN Machinery industry average.

Ashok Leyland is good value based on earnings compared to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Ashok Leyland, we can't assess if its growth is good value.


Price Based on Value of Assets

Ashok Leyland is overvalued based on assets compared to the IN Machinery industry average.


Next Steps

Future Growth

How is Ashok Leyland expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Ashok Leyland is high growth as no revenue estimate data is available.

Ashok Leyland's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Ashok Leyland's revenue growth to the India market average as no estimate data is available.

Ashok Leyland's earnings are expected to decrease over the next 1-3 years, this is below the India market average.

Ashok Leyland's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ashok Leyland will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Ashok Leyland performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ashok Leyland has delivered over 20% year on year earnings growth in the past 5 years.

Ashok Leyland's 1-year earnings growth is less than its 5-year average (2.3% vs 32%)

Ashok Leyland's earnings growth has not exceeded the IN Machinery industry average in the past year (2.3% vs 13.3%).


Return on Equity

Whilst Ashok Leyland has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Ashok Leyland used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Ashok Leyland's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ashok Leyland's financial position?


Financial Position Analysis

Ashok Leyland is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ashok Leyland's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ashok Leyland's level of debt (195.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (184.9% vs 195.2% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

What is Ashok Leyland's current dividend yield, its reliability and sustainability?

5.15%

Current Dividend Yield


Dividend Yield and Payments Analysis

Ashok Leyland's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Ashok Leyland's dividend is above the markets top 25% of dividend payers in India (2.64%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Ashok Leyland's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Gopal Mahadevan (53yo)

0.3yrs

Tenure

₹72,015,000

Compensation

Mr. Gopal Mahadevan has been the Chief Financial Officer of Ashok Leyland Limited since September 1, 2013 and also serves as President of Finance. He serves as Whole-time Director of Ashok Leyland Limited  ...


CEO Compensation Analysis

Gopal's remuneration is higher than average for companies of similar size in India.

Gopal's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

1.9yrs

Average Tenure

53yo

Average Age

The average tenure for the Ashok Leyland management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

56yo

Average Age

The tenure for the Ashok Leyland board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Sell₹7,527,00315 Mar 19
Gopal Mahadevan
EntityIndividual
Role
Chief Executive Officer
President of Finance
Shares80,000
Max Price₹94.09
Sell₹252,696,83420 Feb 19
Vinod Dasari
EntityIndividual
Shares3,196,175
Max Price₹79.06

Ownership Breakdown


Management Team

  • Gopal Mahadevan (53yo)

    President of Finance

    • Tenure: 0.3yrs
    • Compensation: ₹72.02m
  • Rajive Saharia (59yo)

    President of Global Sales & Distribution

    • Tenure: 3.6yrs
    • Compensation: ₹14.62m
  • Bala Balachandar (54yo)

    President of Group HR & Head CSR

    • Tenure: 1.9yrs
  • N. Saravanan (53yo)

    Chief Technology Officer

    • Tenure: 0.0yrs
  • K. Ramkumar (53yo)

    Vice President of Corporate Finance

    • Tenure: 0.0yrs
    • Compensation: ₹7.18m
  • S. Venkataraman (61yo)

    General Manager of Legal

    • Tenure: 0.0yrs
  • Nitin Seth (50yo)

    Chief Operating Officer

    • Tenure: 0.0yrs
    • Compensation: ₹11.74m
  • Anuj Kathuria (50yo)

    Chief Operating Officer

    • Tenure: 0.0yrs
    • Compensation: ₹12.87m
  • N. Ramanathan

    Company Secretary & Compliance Officer

    • Tenure: 0.0yrs
    • Compensation: ₹15.14m
  • Rajesh Mani

    Head of Marketing & Corporate Communication

    • Tenure: 0.0yrs

Board Members

  • Jos Alapont (69yo)

    Additional Independent Director

    • Tenure: 2.6yrs
    • Compensation: ₹7.46m
  • Ram Shahaney (87yo)

    Chairman Emeritus

    • Tenure: 8.8yrs
    • Compensation: ₹7.76m
  • Dheeraj Hinduja (48yo)

    Non-Executive Chairman

    • Tenure: 8.8yrs
    • Compensation: ₹101.19m
  • Jean Brunol (67yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: ₹6.72m
  • Gopal Mahadevan (53yo)

    President of Finance

    • Tenure: 0.3yrs
    • Compensation: ₹72.02m
  • Andy Palmer (56yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: ₹6.48m
  • Sanjay Asher (56yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: ₹7.06m
  • Manisha Girotra (50yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: ₹3.55m
  • Andreas Biagosch (64yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: ₹6.54m

Company Information

Ashok Leyland Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ashok Leyland Limited
  • Ticker: ASHOKLEY
  • Exchange: NSEI
  • Founded: 1948
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: ₹176.866b
  • Shares outstanding: 2.94b
  • Website: https://www.ashokleyland.com

Number of Employees


Location

  • Ashok Leyland Limited
  • No.1, Sardar Patel Road
  • Guindy
  • Chennai
  • Tamil Nadu
  • 600032
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500477BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1994
ASHOKLEYNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1994

Biography

Ashok Leyland Limited, together with its subsidiaries, manufactures and sells commercial vehicles in India and internationally. The company offers city, inter-city, school and college, staff, tourist, stag ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:53
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.