NSEI:ASHOKLEY

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Mediocre balance sheet with questionable track record.


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

Stable Share Price: ASHOKLEY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

ASHOKLEY

2.5%

IN Machinery

2.1%

IN Market


1 Year Return

-22.3%

ASHOKLEY

-6.9%

IN Machinery

2.4%

IN Market

Return vs Industry: ASHOKLEY underperformed the Indian Machinery industry which returned -6.9% over the past year.

Return vs Market: ASHOKLEY underperformed the Indian Market which returned 2.4% over the past year.


Shareholder returns

ASHOKLEYIndustryMarket
7 Day2.7%2.5%2.1%
30 Day-4.2%-0.009%4.5%
90 Day6.2%16.4%21.8%
1 Year-21.7%-22.3%-5.5%-6.9%4.3%2.4%
3 Year-48.0%-51.3%-21.4%-24.8%5.2%0.2%
5 Year-38.5%-43.9%-9.0%-14.8%29.7%20.0%

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 compared to its fair value and its price relative to the market?

43.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASHOKLEY (₹49.95) is trading above our estimate of fair value (₹1.49)

Significantly Below Fair Value: ASHOKLEY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ASHOKLEY is poor value based on its PE Ratio (43.4x) compared to the IN Machinery industry average (14.9x).

PE vs Market: ASHOKLEY is poor value based on its PE Ratio (43.4x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ASHOKLEY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ASHOKLEY is overvalued based on its PB Ratio (1.9x) compared to the IN Machinery industry average (1x).


Next Steps

Future Growth

How is Ashok Leyland forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

20.8%

Forecasted Capital Goods industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ASHOKLEY's forecast earnings growth is above the savings rate (7.2%).

Earnings vs Market: Insufficient data to determine if ASHOKLEY's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if ASHOKLEY's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if ASHOKLEY's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ASHOKLEY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ashok Leyland performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASHOKLEY has high quality earnings.

Growing Profit Margin: ASHOKLEY's current net profit margins (1.5%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: ASHOKLEY's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: ASHOKLEY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ASHOKLEY had negative earnings growth (-83.8%) over the past year, making it difficult to compare to the Machinery industry average (-6.3%).


Return on Equity

High ROE: ASHOKLEY's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Ashok Leyland's financial position?


Financial Position Analysis

Short Term Liabilities: ASHOKLEY's short term assets (₹153.1B) exceed its short term liabilities (₹147.9B).

Long Term Liabilities: ASHOKLEY's short term assets (₹153.1B) exceed its long term liabilities (₹144.4B).


Debt to Equity History and Analysis

Debt Level: ASHOKLEY's debt to equity ratio (181.6%) is considered high.

Reducing Debt: ASHOKLEY's debt to equity ratio has reduced from 190% to 181.6% over the past 5 years.

Debt Coverage: ASHOKLEY's debt is not well covered by operating cash flow (2.4%).

Interest Coverage: ASHOKLEY's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ASHOKLEY's dividend (2%) is higher than the bottom 25% of dividend payers in the Indian market (0.63%).

High Dividend: ASHOKLEY's dividend (2%) is low compared to the top 25% of dividend payers in the Indian market (2.63%).


Stability and Growth of Payments

Stable Dividend: ASHOKLEY's dividend payments have been volatile in the past 10 years.

Growing Dividend: ASHOKLEY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (269.6%), ASHOKLEY's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Vipin Sondhi

0.67

Tenure

Mr. Vipin Sondhi serves as the Chief Executive Officer and Managing Director of JCB India Limited. Mr. Sondhi serves as the Chairman of the Board of Excon. He serves as a Director of JCB India Limited. He ...


Leadership Team

NamePositionTenureCompensationOwnership
Gopal Mahadevan
Whole-time Director & CFO1.25yrs₹72.02m0.00026%
₹ 381.2k
N. Ramanathan
Company Secretary & Compliance Officerno data₹15.14mno data
Vipin Sondhi
CEO, MD & Director0.67yrno datano data
Nitin Seth
Chief Operating Officerno data₹11.74mno data
Anuj Kathuria
Chief Operating Officerno data₹12.87mno data
K. Ramkumar
Vice President of Corporate Financeno data₹7.18mno data
N. Saravanan
Chief Technology Officerno datano datano data
S. Venkataraman
General Manager of Legalno datano datano data
Rajesh Mani
Head of Marketing & Corporate Communicationno datano datano data
N. Balachandar
President of Group HR & Head CSR2.92yrsno datano data
P. Harihar
Head of Operations3.75yrsno datano data
Gupta Kumar
Head of Pant Nagar Plantno datano datano data

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: ASHOKLEY's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gopal Mahadevan
Whole-time Director & CFO1.25yrs₹72.02m0.00026%
₹ 381.2k
Vipin Sondhi
CEO, MD & Director0.67yrno datano data
José Alapont
Additional Independent Director3.58yrs₹7.46mno data
Ram Shahaney
Chairman Emeritus9.83yrs₹7.76mno data
Dheeraj Hinduja
Chairman9.83yrs₹101.19mno data
Jean Brunol
Independent Non-Executive Director9.83yrs₹6.72mno data
Saugata Gupta
Independent Director0.75yrno datano data
Andrew Palmer
Independent Non-Executive Director4.75yrs₹6.48mno data
Sanjay Asher
Independent Non-Executive Director9.67yrs₹7.06mno data
Manisha Girotra
Independent Non-Executive Director5.92yrs₹3.55mno data
Andreas Biagosch
Independent Non-Executive Director7.25yrs₹6.54mno data

5.9yrs

Average Tenure

57yo

Average Age

Experienced Board: ASHOKLEY's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹146.630b
  • Shares outstanding: 2.94b
  • Website: https://www.ashokleyland.com

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 Analysis2020/08/08 12:34
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.