Ashok Leyland Share Price Slides Despite Robust Q4 Financials, Brokerages Largely Positive

Share price of automaker Ashok Leyland Ltd. dipped in trade on Monday, paring opening gains. The company had reported a 40% higher net profit in the final quarter of the previous fiscal. 

Standalone net profit of the truck-maker rose 38.4% year-on-year to Rs 1,246 crore in the three months ended March 2025, even as revenue increased 5.7% to Rs 11,907 crore. Analysts polled by Bloomberg had estimated the bottom line at Rs 1,100 crore.

Ashok Leyland's board also approved a bonus issue of equity shares in 1:1 ratio on Friday. The board had further recently recommended a dividend of Rs 4.25 per share with a face value of Re 1 each for financial year 2025, according to a separate exchange filing.

While brokerages differed in their opinions on valuation, most agree the truck-maker is entering a stronger phase operationally, with improving margins and a clearer roadmap for long-term growth.

While CLSA upgraded the stock to ‘hold’ from ‘underperform’, Nomura maintained its ‘buy’ rating, with Citi also maintaining a ‘buy’ whereas Macquarie maintained a ‘neutral’ rating.

• Revenue up 5.7% at Rs 11,907 crore (Estimate: Rs 12,065.5 crore).

• Ebitda up 12.5% at Rs 1,791 crore (Estimate: 1,695 crore).

• Margin up 100 basis points at 15% (Estimate: 14%).

• Net profit up 38.4% at Rs 1,206 crore (Estimate: Rs 1,100 crore).

The scrip rose as much as 0.92% to Rs 241.81 apiece. It pared gains to trade 0.45% lower at Rs 238.53 apiece, as of 09:22 a.m. This compares to a 0.69% advance in the NSE Nifty 50.

It has risen 10.09% on a year-to-date basis, and 15.12% in the last 12 months. Relative strength index was at 50.70.

Out of 44 analysts tracking the company, 34 maintain a 'buy' rating, seven recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 9.2%.