As of February 13, 2025, here’s a comprehensive analysis of Ashok Leyland’s stock, encompassing fundamental and technical aspects, as well as an overview of the company’s upcoming projects:
1. Company Overview: Ashok Leyland, headquartered in Chennai, is the flagship company of the Hinduja Group and stands as the second-largest manufacturer of commercial vehicles in India. The company boasts a diversified product portfolio, including trucks, buses, light vehicles, and defense solutions, with a significant presence in over 50 countries
2. Recent Financial Performance:
- Q3 FY25 Results: For the quarter ending December 31, 2024, Ashok Leyland reported a standalone profit of ₹7.63 billion, marking a 31.3% increase from the previous year. This surge was primarily driven by a 33% rise in exports, which helped offset a 2.2% decline in total sales due to subdued domestic demand. Revenue from operations grew by 2.2% to ₹94.79 billion.
3. Fundamental Analysis:
- Market Capitalization: As of February 13, 2025, the company’s market cap is ₹65,296.61 crore.
- Price-to-Earnings (PE) Ratio: The PE ratio stands at 23.14, indicating investor expectations of future earnings growth.
- Price-to-Book (PB) Ratio: The PB ratio is 0.16, suggesting the stock is trading below its book value.
- Dividend Yield: The company has a track record of consistent dividend payouts, reflecting its commitment to returning value to shareholders.
4. Technical Analysis:
- Current Share Price: As of February 13, 2025, Ashok Leyland’s share price is ₹222.36.
- 52-Week Range: The stock has traded between ₹157.55 and ₹264.65 over the past year.
- Moving Averages: The stock is currently trading below its short-term moving averages, indicating potential bearish momentum.
- Relative Strength Index (RSI): The RSI suggests the stock is approaching oversold territory, which could signal a potential buying opportunity.
5. Upcoming Projects and Initiatives:
- Electric Bus Manufacturing Plant in Uttar Pradesh: Ashok Leyland is investing ₹1,000 crore to establish a bus manufacturing facility near Lucknow, focusing on clean mobility solutions. The plant will initially have the capacity to produce 2,500 buses annually, with plans to double this capacity over the next decade.
- Hydrogen Fuel Cell Electric Trucks:
