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Ashok Leyland

NSEI:ASHOKLEY
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ASHOKLEY
NSEI
₹268B
Market Cap
  1. Home
  2. IN
  3. Capital Goods
Company description

Ashok Leyland Limited, together with its subsidiaries, manufactures and sells commercial vehicles in India and internationally. The last earnings update was 270 days ago. More info.


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ASHOKLEY Share Price and Events
7 Day Returns
-3.1%
NSEI:ASHOKLEY
-1.1%
IN Machinery
0.3%
IN Market
1 Year Returns
-38.4%
NSEI:ASHOKLEY
-12.3%
IN Machinery
2.4%
IN Market
ASHOKLEY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ashok Leyland (ASHOKLEY) -3.1% 14.7% -14.4% -38.4% -14.3% 302%
IN Machinery -1.1% 9.4% -2.6% -12.3% 25.6% 139.3%
IN Market 0.3% 8% 1.6% 2.4% 44% 81.3%
1 Year Return vs Industry and Market
  • ASHOKLEY underperformed the Machinery industry which returned -12.3% over the past year.
  • ASHOKLEY underperformed the Market in India which returned 2.4% over the past year.
Price Volatility
ASHOKLEY
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ashok Leyland to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ashok Leyland.

NSEI:ASHOKLEY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 18.8%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:ASHOKLEY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.06 (1 + (1- 35%) (59%))
1.312
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.312 * 8.6%)
18.84%

Discounted Cash Flow Calculation for NSEI:ASHOKLEY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ashok Leyland is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:ASHOKLEY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 18.84%)
2019 18,752.17 Est @ 101.52% 15,779.94
2020 32,503.31 Est @ 73.33% 23,016.28
2021 49,924.00 Est @ 53.6% 29,748.89
2022 69,785.10 Est @ 39.78% 34,992.73
2023 90,799.39 Est @ 30.11% 38,313.50
2024 111,995.60 Est @ 23.34% 39,767.08
2025 132,833.28 Est @ 18.61% 39,690.21
2026 153,142.25 Est @ 15.29% 38,505.73
2027 173,000.73 Est @ 12.97% 36,604.30
2028 192,622.72 Est @ 11.34% 34,296.15
Present value of next 10 years cash flows ₹330,714.82
NSEI:ASHOKLEY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹192,622.72 × (1 + 7.55%) ÷ (18.84% – 7.55%)
₹1,835,680.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹1,835,680.04 ÷ (1 + 18.84%)10
₹326,839.76
NSEI:ASHOKLEY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹330,714.82 + ₹326,839.76
₹657,554.58
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹657,554.58 / 2,935.53
₹224
NSEI:ASHOKLEY Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹224.00
Current discount Discount to share price of ₹90.85
= -1 x (₹90.85 - ₹224.00) / ₹224.00
59.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ashok Leyland is available for.
Intrinsic value
>50%
Share price is ₹90.85 vs Future cash flow value of ₹224
Current Discount Checks
For Ashok Leyland to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ashok Leyland's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ashok Leyland's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ashok Leyland's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ashok Leyland's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:ASHOKLEY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹6.06
NSEI:ASHOKLEY Share Price ** NSEI (2019-03-20) in INR ₹90.85
India Machinery Industry PE Ratio Median Figure of 141 Publicly-Listed Machinery Companies 18.91x
India Market PE Ratio Median Figure of 2,728 Publicly-Listed Companies 16.54x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ashok Leyland.

NSEI:ASHOKLEY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:ASHOKLEY Share Price ÷ EPS (both in INR)

= 90.85 ÷ 6.06

15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Ashok Leyland's expected growth come at a high price?
Raw Data
NSEI:ASHOKLEY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-1.9%per year
India Machinery Industry PEG Ratio Median Figure of 28 Publicly-Listed Machinery Companies 1.56x
India Market PEG Ratio Median Figure of 596 Publicly-Listed Companies 1.28x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Ashok Leyland, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ashok Leyland's assets?
Raw Data
NSEI:ASHOKLEY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹25.35
NSEI:ASHOKLEY Share Price * NSEI (2019-03-20) in INR ₹90.85
India Machinery Industry PB Ratio Median Figure of 169 Publicly-Listed Machinery Companies 1.68x
India Market PB Ratio Median Figure of 3,614 Publicly-Listed Companies 1.11x
NSEI:ASHOKLEY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:ASHOKLEY Share Price ÷ Book Value per Share (both in INR)

= 90.85 ÷ 25.35

3.58x

* Primary Listing of Ashok Leyland.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ashok Leyland is overvalued based on assets compared to the IN Machinery industry average.
X
Value checks
We assess Ashok Leyland's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Ashok Leyland has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Ashok Leyland, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ashok Leyland expected to grow at an attractive rate?
  • 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%.
Growth vs Market Checks
  • Ashok Leyland's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Unable to compare Ashok Leyland's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:ASHOKLEY Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:ASHOKLEY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -1.9%
India Machinery Industry Earnings Growth Rate Market Cap Weighted Average 14.1%
India Machinery Industry Revenue Growth Rate Market Cap Weighted Average 12.6%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:ASHOKLEY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:ASHOKLEY Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 296,196 14,773 17,731
2017-03-31 228,710 2,701 15,936
2016-03-31 212,599 -12,747 6,819

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ashok Leyland's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Ashok Leyland is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:ASHOKLEY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (11 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Ashok Leyland Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:ASHOKLEY Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 6.06
2017-03-31 5.52
2016-03-31 2.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ashok Leyland will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ashok Leyland's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ashok Leyland has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ashok Leyland performed over the past 5 years?

  • Ashok Leyland's last earnings update was 270 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ashok Leyland's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (11.3% vs 60.2%)
  • Ashok Leyland's earnings growth has not exceeded the IN Machinery industry average in the past year (11.3% vs 36.7%).
Earnings and Revenue History
Ashok Leyland's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ashok Leyland Company Filings, last reported 11 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:ASHOKLEY Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 296,195.70 17,731.13 22,820.09
2017-03-31 228,709.66 15,935.89 18,598.54
2016-03-31 212,599.02 6,819.33 17,213.85
2015-03-31 153,408.88 1,338.90 15,390.59
2014-03-31 114,867.20 -1,641.22 23,708.46 975.81
2013-12-31 106,413.12 -1,839.79 20,839.50 568.27
2013-09-30 110,863.92 573.69 21,060.36 568.27
2013-06-30 118,339.81 2,250.20 21,152.68 568.27
2013-03-31 124,812.00 4,337.07 21,249.35 568.27
2012-12-31 129,216.91 5,424.12 17,990.41 694.37
2012-09-30 134,889.42 5,351.75 18,096.55 694.37
2012-06-30 132,994.76 5,466.60 17,973.63 694.37
2012-03-31 129,043.27 5,659.77 18,406.55 694.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • Ashok Leyland used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.
  • Ashok Leyland has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ashok Leyland's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ashok Leyland has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ashok Leyland's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ashok Leyland's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Ashok Leyland's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ashok Leyland Company Filings, last reported 11 months ago.

NSEI:ASHOKLEY Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 82,459.22 158,309.28 46,969.38
2017-03-31 69,819.34 133,252.07 22,349.02
2016-03-31 56,809.88 113,356.34 20,570.45
2015-03-31 47,744.54 90,698.60 15,980.91
2014-03-31 46,413.41 84,999.62 5,877.96
2013-12-31 42,606.58 48,948.15 167.06
2013-09-30 42,606.58 48,948.15 167.06
2013-06-30 44,551.05 43,554.33 139.42
2013-03-31 44,551.05 43,554.33 139.42
2012-12-31
2012-09-30
2012-06-30 42,081.74 30,978.93 325.56
2012-03-31 42,123.26 30,978.93 325.56
  • Ashok Leyland's level of debt (192%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (97.8% vs 192% today).
  • Debt is not well covered by operating cash flow (9.3%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Ashok Leyland's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ashok Leyland has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.67%
Current annual income from Ashok Leyland dividends.
If you bought ₹2,000 of Ashok Leyland shares you are expected to receive ₹53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ashok Leyland's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Ashok Leyland's dividend is above the markets top 25% of dividend payers in India (1.89%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:ASHOKLEY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Machinery Industry Average Dividend Yield Market Cap Weighted Average of 99 Stocks 1.3%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:ASHOKLEY Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-05-18 2.430 2.209
2017-05-25 1.560 1.303
2016-05-25 0.950 1.088
2015-05-12 0.450 0.516
2014-07-02 0.000 0.000
2014-06-26 0.000 0.000
2014-06-20 0.000 0.000
2014-05-22 0.000 0.000
2013-05-10 0.600 3.477
2012-05-14 1.000 4.157
2011-05-19 1.000 3.834
2010-04-29 0.750 2.380
2009-06-01 0.500 2.316
2009-05-15 0.500 3.466
2009-03-23 0.750 7.427

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Ashok Leyland's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x 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.
X
Income/ dividend checks
We assess Ashok Leyland's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ashok Leyland afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ashok Leyland has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vinod Dasari
COMPENSATION ₹188,094,448
AGE 52
TENURE AS CEO 2.9 years
CEO Bio

Mr. Vinod Kumar Dasari, BS (Engg), MEM, MBA, has been the Managing Director of Ashok Leyland Limited since April 1, 2011 and has been its Chief Executive Officer since April 01, 2016. Mr. Dasari serves as the Managing Director of Hinduja Automotive Limited. Mr. Dasari served as the Chief Operating Officer of Ashok Leyland Ltd. since April 6, 2005 and served as the Head of its manufacturing, strategic sourcing and corporate quality engineering divisions. Mr. Dasari served as a Joint Managing Director of Cummins India Ltd. He joined Cummins in 2002. He commenced his career with the General Electric Company in 1986. He served as the President of the Global Railroad business of The Timken Company since 2000 until 2002. He joined Timken U.S.A. as Senior Business Analyst of Manufacturing and Strategy. He served as the Managing Director of Timken India Ltd. since 1998 and also served as its Director of Manufacturing and Technology. He has been a Wholetime Director at Ashok Leyland Limited since May 08, 2008. He has been a Non Executive Director of Lanka Ashok Leyland PLC since September 2009. He served as an Additional Director of GULF Oil Corporation Limited from September 27, 2006 to May 30, 2012. He served as a Non Executive Non Independent Director of Timken India Ltd. until April 23, 2005. Mr. Dasari holds a BS degree in Engineering from University of Louisville, USA, a Masters Degree in Business Administration from J.L. Kellogg School of Management, USA in 1992 and a Masters Degree in Engineering Management from McCormick School of Engineering, USA.

CEO Compensation
  • Vinod's compensation has increased by more than 20% in the past year.
  • Vinod's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Ashok Leyland management team in years:

2.9
Average Tenure
52.5
Average Age
  • The tenure for the Ashok Leyland management team is about average.
Management Team

Dheeraj Hinduja

TITLE
Executive Chairman
COMPENSATION
₹81M
AGE
47
TENURE
0.3 yrs

Vinod Dasari

TITLE
CEO, MD & Wholetime Director
COMPENSATION
₹188M
AGE
52
TENURE
2.9 yrs

Gopal Mahadevan

TITLE
President of Finance & CFO
COMPENSATION
₹55M
TENURE
5.5 yrs

N. Ramanathan

TITLE
Company Secretary & Compliance Officer
COMPENSATION
₹12M

K. Kumar

TITLE
Vice President of Corporate Finance
COMPENSATION
₹7M
AGE
52

Seshu Bhagavathula

TITLE
Chief Technology Officer
TENURE
2.9 yrs

S. Venkataraman

TITLE
General Manager of Legal
AGE
60

Bala Balachandar

TITLE
President of Group HR & Head CSR
AGE
53
TENURE
1.5 yrs

Rajesh Mani

TITLE
Head of Marketing & Corporate Communication

Rajive Saharia

TITLE
President of Global Sales & Distribution
COMPENSATION
₹15M
AGE
58
TENURE
3.2 yrs
Board of Directors Tenure

Average tenure and age of the Ashok Leyland board of directors in years:

8.3
Average Tenure
55
Average Age
  • The tenure for the Ashok Leyland board of directors is about average.
Board of Directors

Vinod Dasari

TITLE
CEO, MD & Wholetime Director
COMPENSATION
₹188M
AGE
52
TENURE
10.8 yrs

Ram Shahaney

TITLE
Chairman Emeritus
COMPENSATION
₹8M
AGE
86
TENURE
8.4 yrs

Dheeraj Hinduja

TITLE
Executive Chairman
COMPENSATION
₹81M
AGE
47
TENURE
8.4 yrs

Doveton Jagannathrao Rao

TITLE
Independent Non-Executive Director
COMPENSATION
₹6M
AGE
79
TENURE
18.7 yrs

Sanjay Asher

TITLE
Independent Non-Executive Director
COMPENSATION
₹6M
AGE
55
TENURE
8.3 yrs

Andreas Biagosch

TITLE
Independent Non-Executive Director
COMPENSATION
₹7M
AGE
63
TENURE
5.8 yrs

Andy Palmer

TITLE
Independent Non-Executive Director
COMPENSATION
₹6M
AGE
55
TENURE
3.3 yrs

Jean Brunol

TITLE
Independent Non-Executive Director
COMPENSATION
₹7M
AGE
66
TENURE
8.4 yrs

Manisha Girotra

TITLE
Independent Non-Executive Director
COMPENSATION
₹3M
AGE
49
TENURE
4.5 yrs

Sudhindar Khanna

TITLE
Independent Non-Executive Director
COMPENSATION
₹8M
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • Ashok Leyland insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
15. Mar 19 Sell Gopal Mahadevan Individual 15. Mar 19 15. Mar 19 -80,000 ₹94.09 ₹-7,527,003
20. Feb 19 Sell Vinod Dasari Individual 19. Feb 19 19. Feb 19 -3,196,175 ₹79.06 ₹-252,696,834
X
Management checks
We assess Ashok Leyland's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ashok Leyland has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Ashok Leyland Limited's (NSE:ASHOKLEY) CEO Overpaid Relative To Its Peers?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Vinod Dasari's Compensation Compare With Similar Sized Companies. … Our data indicates that Ashok Leyland Limited is worth ₹263b, and total annual CEO compensation is ₹188m.

Simply Wall St -

The Ashok Leyland Share Price Is Up 416% And Shareholders Are Delighted

Ashok Leyland Limited (NSE:ASHOKLEY) shareholders might be concerned after seeing the share price drop 26% in the last quarter. … The most important thing for savvy investors to consider is whether the underlying business can justify the share price gain. … Over half a decade, Ashok Leyland managed to grow its earnings per share at 30% a year.

Simply Wall St -

Why We Like Ashok Leyland Limited’s (NSE:ASHOKLEY) 19% Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is Ashok Leyland Limited's (NSE:ASHOKLEY) CEO Overpaid Relative To Its Peers?

Vinod Dasari became the CEO of Ashok Leyland Limited (NSE:ASHOKLEY) in 2016. … Our data indicates that Ashok Leyland Limited is worth ₹349b, and total annual CEO compensation is ₹188m. … As you can see, Vinod Dasari is paid more than the median CEO pay at companies of a similar size, in the same market

Simply Wall St -

Ashok Leyland Limited (NSE:ASHOKLEY) Delivered A Better ROE Than Its Industry

Our data shows Ashok Leyland has a return on equity of 22% for the last year. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.22 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Shareholder Owns Most Ashok Leyland Limited (NSE:ASHOKLEY) Stock?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Check out our latest analysis for Ashok Leyland

Simply Wall St -

Is Ashok Leyland Limited (NSE:ASHOKLEY) An Attractive Dividend Stock?

Historically, Ashok Leyland Limited (NSE:ASHOKLEY) has been paying a dividend to shareholders. … Does Ashok Leyland tick all the boxes of a great dividend stock? … Check out our latest analysis for Ashok Leyland

Simply Wall St -

Is Ashok Leyland Limited's (NSE:ASHOKLEY) High P/E Ratio A Problem For Investors?

We'll show how you can use Ashok Leyland Limited's (NSE:ASHOKLEY) P/E ratio to inform your assessment of the investment opportunity. … Ashok Leyland has a P/E ratio of 19.02, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Ashok Leyland Limited (NSE:ASHOKLEY): A Look At Return On Capital

and looking to gauge the potential return on investment in Ashok Leyland Limited (NSE:ASHOKLEY). … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Thus, to understand how your money can grow by investing in Ashok Leyland, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Should You Worry About Ashok Leyland Limited's (NSE:ASHOKLEY) CEO Pay Check?

Vinod Dasari took the reins as CEO of Ashok Leyland Limited's (NSE:ASHOKLEY) and grew market cap to ₹331.23b recently. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor.

Simply Wall St -

Company Info

Description

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, stage carrier, and airport buses; haulage, mining and construction, and distribution trucks, as well as tractors; light vehicles; and defense vehicles comprising water bowsers, snow clearing vehicles, refrigerated trucks, ambulances, long and short chassis buses, and multi fuel dispensers. It also provides power solutions, such as diesel generator sets; engines for earthmoving equipment, compressors, cranes, lift and shift applications, road sweepers etc.; agriculture engines for pump set, harvester combine applications, etc.; and marine engines for propulsion and auxiliary applications. In addition, the company offers spare parts, and forgings and castings. Further, it provides various repair kits; driver training services; and vehicle and housing financing services. The company was founded in 1948 and is headquartered in Chennai, India. Ashok Leyland Limited is a subsidiary of Hinduja Automotive Limited.

Details
Name: Ashok Leyland Limited
ASHOKLEY
Exchange: NSEI
Founded: 1948
₹268,307,193,026
2,935,527,276
Website: http://www.ashokleyland.com
Address: Ashok Leyland Limited
No.1, Sardar Patel Road,
Guindy,
Chennai,
Tamil Nadu, 600032,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI ASHOKLEY Equity Shares National Stock Exchange of India IN INR 03. Nov 1994
BSE 500477 Equity Shares Mumbai Stock Exchange IN INR 03. Nov 1994
Number of employees
Current staff
Staff numbers
0
Ashok Leyland employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 12:49
End of day share price update: 2019/03/20 00:00
Last earnings filing: 2018/06/23
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.