Ashok Leyland, a USD 4.5 billion company with a 75-year legacy, is a leading player in the global commercial vehicle industry. It is the second-largest manufacturer of commercial vehicles in India, the fourth-largest bus manufacturer globally, and the nineteenth-largest truck manufacturer. Headquartered in Chennai, Ashok Leyland operates nine manufacturing plants, including seven in India, and facilities in Ras Al Khaimah (UAE) and Leeds (UK). The company also partners with the Alteams Group for aluminum component manufacturing.
Ashok Leyland has a significant international presence in over 50 countries and provides the largest fleet of logistics vehicles to the Indian Army, alongside global defense partnerships. Its diverse portfolio includes commercial vehicles and engines for industrial, genset, and marine applications. The company has pioneered several industry benchmarks and holds ISO/TS 16949 certification, along with OBD-II certification for BS IV-compliant engines and other advanced technologies.
The company’s extensive network includes 52,863 touchpoints, ensuring service centers every 75 kilometers on major highways and promising quick response times. Ashok Leyland’s innovative products, customer-centric approach, and strategic global presence underscore its leadership in the commercial vehicle sector.
Ashok Leyland Q4 Net Profit Surges 20% to Rs 900 Crore Amid Strong M&LCV Demand
- Net Profit: Ashok Leyland Limited (ALL) reported a 20% increase in net profit for Q4 FY2023-24, reaching Rs 900 crore.
- Profit After Tax (PAT): PAT for Q4 FY23 was Rs 751 crore.
- Revenue Decline: Revenue from operations decreased by 3% to Rs 11,267 crore, down from Rs 11,626 crore in the same period last year.
- Performance Drivers: The strong results were driven by robust performance across all business verticals, particularly in the medium and light commercial vehicle (M&LCV) segments.
- Market Leadership: In the Medium and Heavy Commercial Vehicle (M&HCV) Bus segment, Ashok Leyland gained 5.8 percentage points in market share, becoming the market leader.
- Chairman’s Statement: Dheeraj Hinduja, Chairman, expressed optimism about the industry’s short- to medium-term prospects, backed by anticipated growth in the Indian economy.
- Commercial Vehicle Volumes: Total CV volumes for the year were 194,553 units, close to the previous high of 197,366 units.
- LCV Volumes: Volumes in the 2-3.5 tonne LCV category were stable despite an industry-wide decline.
- Export Volumes: Export volumes grew by 5% despite challenging conditions in target markets.
- CEO’s Remarks: Shenu Agarwal, Managing Director & CEO, highlighted that FY24 achieved all-time highs in revenues, EBITDA margins, and profits, and expressed confidence in continued growth and market share improvement.
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | |
| Promoters + | 51.53% | 51.53% | 51.53% | 51.53% | 51.52% |
| FIIs + | 14.85% | 16.59% | 20.21% | 20.48% | 21.45% |
| DIIs + | 22.15% | 20.79% | 16.51% | 14.66% | 12.23% |
| Government + | 0.07% | 0.07% | 0.07% | 0.07% | 0.07% |
| Public + | 11.40% | 11.02% | 11.66% | 13.25% | 14.72% |
| No. of Shareholders | 11,18,107 | 10,99,982 | 12,06,482 | 13,39,744 | 14,91,397 |
Between March 2023 and March 2024, Ashok Leyland’s shareholding patterns saw notable changes. Promoters’ holdings remained relatively stable at around 51.53%, slightly dipping to 51.52% by March 2024. Foreign Institutional Investors (FIIs) increased their stake significantly from 14.85% to 21.45%, indicating growing foreign investor confidence. Conversely, Domestic Institutional Investors (DIIs) reduced their holdings from 22.15% to 12.23%. Government shareholdings remained unchanged at 0.07%. Public shareholding rose from 11.40% to 14.72%, reflecting increased interest from retail investors. The number of shareholders also grew substantially, from 11,18,107 to 14,91,397, indicating a broader investor base.
Below are the trading platforms that you can use to purchase Ashok Leyland shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
| When | Maximum Price | Minimum Price |
| July 2024 | 232.80 | 202.44 |
| August 2024 | 242.12 | 210.54 |
| September 2024 | 251.80 | 218.96 |
| October 2024 | 246.86 | 214.66 |
| November 2024 | 256.74 | 223.25 |
| December 2024 | 259.31 | 225.48 |
In 2024, Ashok Leyland’s stock prices are projected to show a steady increase. In July, the maximum price is expected to be ₹232.80, with a minimum of ₹202.44. By August, the prices should range from ₹242.12 to ₹210.54. In September, the prices are anticipated to increase further, reaching a maximum of ₹251.80 and a minimum of ₹218.96. As the year progresses, October’s prices are projected to be between ₹246.86 and ₹214.66. By November, they are expected to range from ₹256.74 to ₹223.25. Finally, in December, Ashok Leyland’s maximum price is projected to be ₹259.31, with a minimum of ₹225.48.
| When | Maximum Price | Minimum Price |
| January 2025 | 256.83 | 197.56 |
| February 2025 | 259.42 | 199.56 |
| March 2025 | 264.87 | 203.75 |
| April 2025 | 262.25 | 201.73 |
| May 2025 | 254.61 | 195.85 |
| June 2025 | 266.07 | 204.67 |
| July 2025 | 260.85 | 200.65 |
| August 2025 | 268.92 | 206.86 |
| September 2025 | 272.15 | 209.34 |
| October 2025 | 279.22 | 214.79 |
| November 2025 | 286.20 | 220.16 |
| December 2025 | 299.08 | 230.06 |
As we step into January 2025, Ashok Leyland’s shares are forecasted to range between a maximum of 256.83 and a minimum of 197.56. Moving into February 2025, the range is expected to be between 259.42 and 199.56. By March 2025, the projected range extends from 264.87 to 203.75. In April 2025, the range is forecasted to be 262.25 to 201.73. May 2025 sees the range between 254.61 and 195.85. June 2025 anticipates a range from 266.07 to 204.67. July 2025 projects a range of 260.85 to 200.65. August 2025 is expected to see prices between 268.92 and 206.86. September 2025 forecasts a range of 272.15 to 209.34. October 2025 is projected to have a range from 279.22 to 214.79. Moving into November 2025, the range is anticipated to be between 286.20 and 220.16. Finally, December 2025 is forecasted to have prices ranging from 299.08 to 230.06.
| When | Maximum Price | Minimum Price |
| January 2026 | 308.05 | 236.96 |
| February 2026 | 300.35 | 231.04 |
| March 2026 | 306.36 | 235.66 |
| April 2026 | 312.61 | 240.47 |
| May 2026 | 309.52 | 238.09 |
| June 2026 | 317.25 | 244.04 |
| July 2026 | 311.03 | 239.26 |
| August 2026 | 320.65 | 246.66 |
| September 2026 | 327.07 | 251.59 |
| October 2026 | 335.57 | 258.13 |
| November 2026 | 343.96 | 264.58 |
| December 2026 | 352.56 | 271.20 |
| When | Maximum Price | Minimum Price |
| January 2027 | 356.08 | 273.91 |
| February 2027 | 365.21 | 280.93 |
| March 2027 | 379.46 | 291.89 |
| April 2027 | 372.02 | 286.17 |
| May 2027 | 361.18 | 277.83 |
| June 2027 | 377.43 | 290.33 |
| July 2027 | 370.03 | 284.64 |
| August 2027 | 381.48 | 293.44 |
| September 2027 | 394.83 | 303.72 |
| October 2027 | 405.10 | 311.61 |
| November 2027 | 415.22 | 319.40 |
| December 2027 | 425.60 | 327.39 |
| When | Maximum Price | Minimum Price |
| January 2028 | 434.12 | 333.94 |
| February 2028 | 445.25 | 342.50 |
| March 2028 | 462.61 | 355.86 |
| April 2028 | 453.54 | 348.88 |
| May 2028 | 440.33 | 338.72 |
| June 2028 | 460.15 | 353.96 |
| July 2028 | 451.12 | 347.02 |
| August 2028 | 465.08 | 357.75 |
| September 2028 | 481.35 | 370.27 |
| October 2028 | 493.87 | 379.90 |
| November 2028 | 506.22 | 389.40 |
| December 2028 | 518.87 | 399.13 |
| When | Maximum Price | Minimum Price |
| January 2029 | 529.25 | 407.11 |
| February 2029 | 542.82 | 417.55 |
| March 2029 | 563.99 | 433.84 |
| April 2029 | 552.93 | 425.33 |
| May 2029 | 536.83 | 412.94 |
| June 2029 | 560.98 | 431.52 |
| July 2029 | 549.98 | 423.06 |
| August 2029 | 566.99 | 436.15 |
| September 2029 | 586.84 | 451.41 |
| October 2029 | 602.09 | 463.15 |
| November 2029 | 617.15 | 474.73 |
| December 2029 | 632.58 | 486.60 |
| When | Maximum Price | Minimum Price |
| January 2030 | 645.23 | 496.33 |
| February 2030 | 661.77 | 509.06 |
| March 2030 | 687.58 | 528.91 |
| April 2030 | 674.10 | 518.54 |
| May 2030 | 654.46 | 503.43 |
| June 2030 | 683.92 | 526.09 |
| July 2030 | 670.51 | 515.77 |
| August 2030 | 691.24 | 531.73 |
| September 2030 | 715.44 | 550.34 |
| October 2030 | 734.04 | 564.64 |
| November 2030 | 752.39 | 578.76 |
| December 2030 | 771.20 | 593.23 |
- Expected maximum price in December 2030: $771.20
- Expected minimum price in December 2030: $593.23
Financial Condition of Ashok Leyland: Last 5 years
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
| Sales + | 21,951 | 19,454 | 26,237 | 41,673 | 45,791 |
| Expenses + | 18,718 | 16,992 | 23,472 | 36,580 | 37,848 |
| Operating Profit | 3,233 | 2,462 | 2,765 | 5,093 | 7,943 |
| OPM % | 15% | 13% | 11% | 12% | 17% |
| Other Income + | 57 | 207 | -230 | 169 | 73 |
| Interest | 1,802 | 1,901 | 1,869 | 2,094 | 2,982 |
| Depreciation | 750 | 836 | 866 | 900 | 927 |
| Profit before tax | 739 | -67 | -200 | 2,269 | 4,106 |
| Tax % | 38% | -4% | -43% | 40% | 34% |
| Net Profit + | 460 | -70 | -285 | 1,362 | 2,696 |
| EPS in Rs | 1.15 | -0.56 | -1.22 | 4.23 | 8.46 |
| Dividend Payout % | 44% | -107% | -82% | 62% | 59% |
- Sales Growth: From March 2020 to March 2024, sales experienced a significant increase, rising from ₹21,951 crore to ₹45,791 crore, showcasing robust growth in the company’s revenue over the period.
- Expenses: Corresponding to the sales growth, expenses also escalated, reaching ₹37,848 crore in March 2024 from ₹18,718 crore in March 2020. This increase reflects the expansion and operational activities undertaken by the company during this period.
- Operating Profit: The operating profit witnessed a substantial rise, surging from ₹3,233 crore in March 2020 to ₹7,943 crore in March 2024, indicating improved operational efficiency and profitability.
- Operating Profit Margin (OPM): The OPM percentage fluctuated over the years but saw an overall increase, reaching 17% in March 2024 compared to 15% in March 2020, indicating better cost management and profitability.
- Other Income: Other income sources varied over the years, with fluctuations observed. Despite some variability, the overall trend remained relatively stable, with a slight increase from ₹57 crore in March 2020 to ₹73 crore in March 2024.
- Interest and Depreciation: Interest expenses and depreciation costs showed slight increases over the years, reflecting the company’s investment in assets and financing activities to support its growth trajectory.
- Profit Before Tax: The profit before tax demonstrated a remarkable surge, reaching ₹4,106 crore in March 2024 from ₹739 crore in March 2020, highlighting significant improvements in the company’s financial performance and operational efficiency.
- Net Profit: Net profit exhibited a remarkable turnaround, shifting from a loss of ₹70 crore in March 2021 to a substantial profit of ₹2,696 crore in March 2024, indicating the company’s successful recovery and profitability enhancement initiatives.
- Earnings Per Share (EPS): The EPS surged from a negative value in March 2021 to ₹8.46 in March 2024, reflecting the company’s improved profitability and enhanced shareholder value.
- Dividend Payout: Despite fluctuations, the dividend payout percentage remained relatively stable over the years, standing at 59% in March 2024, indicating the company’s commitment to returning value to its shareholders while maintaining financial stability.
FAQS
As of July 10th, 2024, the current share price of Ashok Leyland is ₹226.
According to our analysis, Ashok Leyland could reach a maximum of ₹299.08 by the end of 2025.
The share price target for Ashok Leyland in 2030 is projected to range between ₹496.33 and ₹771.20.
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Conclusion
Ashok Leyland’s Q4 results are a testament to the company’s enduring values and steadfast commitment to excellence. With a strong 20% surge in net profit to Rs 900 crore, the company showcases its resilience and agility in navigating market challenges while delivering substantial returns to its stakeholders. Chairman Dheeraj Hinduja’s optimistic outlook, rooted in anticipated economic growth, mirrors Ashok Leyland’s values of foresight and adaptability, instilling confidence in the company’s trajectory.
Moreover, the evolving shareholding patterns, marked by increased foreign investor confidence and growing public interest, underscore Ashok Leyland’s reputation for transparency and trustworthiness. As the company continues to uphold its values amidst dynamic market conditions, it remains poised for sustained growth and continued value creation, ensuring a bright future for both the company and its stakeholders.
Having said that, we are not a financial advisor. Please consult a SEBI-registered financial advisor before trading Ashok Leyland. This post on Ashok Leyland shares price target from 2024 to 2030 is for educational purposes only.
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