Ashok Leyland Limited

NSEI:ASHOKLEY Stock Report

Market Cap: ₹642.8b

Ashok Leyland Valuation

Is ASHOKLEY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ASHOKLEY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ASHOKLEY (₹218.9) is trading above our estimate of fair value (₹183.77)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ASHOKLEY?

Key metric: As ASHOKLEY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ASHOKLEY. This is calculated by dividing ASHOKLEY's market cap by their current earnings.
What is ASHOKLEY's PE Ratio?
PE Ratio24.5x
Earnings₹26.28b
Market Cap₹642.78b

Price to Earnings Ratio vs Peers

How does ASHOKLEY's PE Ratio compare to its peers?

The above table shows the PE ratio for ASHOKLEY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.3x
500480 Cummins India
46.6x10.1%₹908.8b
COCHINSHIP Cochin Shipyard
39.3x9.4%₹340.8b
ACE Action Construction Equipment
39.2x13.6%₹143.2b
TITAGARH Titagarh Rail Systems
48.1x28.1%₹146.4b
ASHOKLEY Ashok Leyland
24.5x13.2%₹642.8b

Price-To-Earnings vs Peers: ASHOKLEY is good value based on its Price-To-Earnings Ratio (24.5x) compared to the peer average (43.3x).

Price to Earnings Ratio vs Industry

How does ASHOKLEY's PE Ratio compare vs other companies in the IN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
504220 W.S. Industries (India)
4.7xn/aUS$84.79m
No more companies available in this PE range
ASHOKLEY 24.5xIndustry Avg. 35.5xNo. of Companies22PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ASHOKLEY is good value based on its Price-To-Earnings Ratio (24.5x) compared to the Indian Machinery industry average (35.5x).

Price to Earnings Ratio vs Fair Ratio

What is ASHOKLEY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ASHOKLEY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.5x
Fair PE Ratio39.1x

Price-To-Earnings vs Fair Ratio: ASHOKLEY is good value based on its Price-To-Earnings Ratio (24.5x) compared to the estimated Fair Price-To-Earnings Ratio (39.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ASHOKLEY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹218.90
₹251.03
+14.7%
12.9%₹325.00₹160.00n/a38
Nov ’25₹209.25
₹262.08
+25.2%
11.5%₹315.00₹178.00n/a37
Oct ’25₹238.13
₹259.92
+9.2%
13.7%₹315.00₹146.00n/a39
Sep ’25₹256.45
₹259.43
+1.2%
13.7%₹315.00₹146.00n/a40
Aug ’25₹250.20
₹258.90
+3.5%
13.8%₹315.00₹146.00n/a39
Jul ’25₹238.78
₹228.67
-4.2%
14.0%₹275.00₹140.00n/a39
Jun ’25₹224.00
₹226.45
+1.1%
14.0%₹275.00₹140.00n/a38
May ’25₹192.65
₹202.08
+4.9%
13.5%₹245.00₹140.00n/a38
Apr ’25₹174.65
₹200.84
+15.0%
13.6%₹240.00₹120.00n/a38
Mar ’25₹171.95
₹200.84
+16.8%
13.6%₹240.00₹120.00n/a38
Feb ’25₹174.75
₹203.08
+16.2%
11.2%₹240.00₹140.00n/a37
Jan ’25₹185.95
₹204.95
+10.2%
10.0%₹240.00₹140.00n/a38
Dec ’24₹176.30
₹204.82
+16.2%
9.9%₹240.00₹140.00n/a39
Nov ’24₹165.10
₹205.03
+24.2%
9.8%₹239.00₹140.00₹209.2538
Oct ’24₹177.00
₹202.55
+14.4%
10.6%₹239.00₹140.00₹238.1338
Sep ’24₹184.20
₹202.55
+10.0%
10.6%₹239.00₹140.00₹256.4538
Aug ’24₹184.20
₹199.54
+8.3%
11.6%₹239.00₹135.00₹250.2039
Jul ’24₹167.40
₹179.97
+7.5%
9.9%₹215.00₹135.00₹238.7837
Jun ’24₹147.15
₹177.55
+20.7%
9.7%₹215.00₹135.00₹224.0038
May ’24₹145.95
₹179.22
+22.8%
8.5%₹203.00₹140.00₹192.6537
Apr ’24₹139.20
₹181.91
+30.7%
6.9%₹203.00₹155.00₹174.6535
Mar ’24₹143.95
₹182.45
+26.7%
6.9%₹205.00₹155.00₹171.9538
Feb ’24₹147.70
₹178.21
+20.7%
6.7%₹205.00₹152.00₹174.7538
Jan ’24₹143.40
₹177.53
+23.8%
6.7%₹205.00₹152.00₹185.9538
Dec ’23₹148.70
₹177.10
+19.1%
6.8%₹205.00₹152.00₹176.3039
Nov ’23₹149.75
₹175.26
+17.0%
7.5%₹205.00₹146.00₹165.1038

Analyst Forecast: Target price is less than 20% higher than the current share price.

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