Overall Fundamental outlook

Business Operations:

Sector: Industrials
Industry: Farm & Heavy Construction Machinery

Ashok Leyland Limited, together with its subsidiaries, manufactures and sells commercial vehicles in India and internationally. The company offers buses; haulage and ICV trucks, as well as tractors and tippers; light commercial vehicles goods carriers and passenger, as well as small commercial vehicles goods carriers; and defense vehicles comprising logistics, high mobility, armored, and specialist vehicles. It also provides power solutions, such as diesel generators, agriculture engines, industrial engines, and marine engines; spare parts; and vehicle and housing financing services. In addition, the company trades in commercial vehicles; and offers manpower supply, air chartering, and IT services, as well as manufactures forgings and castings. Further, it operates retail stores; and LeyKart, an e-commerce store for spare parts. The company was incorporated in 1948 and is headquartered in Chennai, India.

Revenue projections:

Revenue projections for ASHOKLEY
Revenue projections for ASHOKLEY

Ashok Leyland Limited's revenue is projected to decrease from last year, a development that could lead investors to adopt a more cautious approach. A revenue decline can negatively affect profitability, signaling challenges for the company and making it less attractive for those seeking solid financial performance.

Financial Ratios:

currentRatio 1.349000
forwardPE 27.752283
debtToEquity 327.886000
earningsGrowth 0.075000
revenueGrowth 0.128000
grossMargins 0.402340
operatingMargins 0.200240
trailingEps 5.540000
forwardEps 7.038340

ASHOKLEY's current ratio being 1.349 suggests that the company has no issue servicing its short-term debt. Its strong liquidity position, supported by sufficient cash reserves and current assets, ensures that ASHOKLEY can meet its financial obligations with ease.
Ashok Leyland Limited's Forward PE being in a good range indicates the stock is priced well relative to its earnings. It is not overvalued, leaving space for future growth, making it an appealing option for investors interested in long-term value appreciation.
ASHOKLEY's elevated debt-to-equity ratio suggests the company is leveraging debt heavily, increasing its financial risk. While this can support growth, it could also lead to challenges if the company's profitability or cash flow weakens.
Ashok Leyland Limited's positive gross and operating margins indicate healthy profitability. These margins reflect the company's ability to generate income efficiently from its operations, signaling strong financial performance and effective cost management.
Ashok Leyland Limited's forward EPS being higher than its trailing EPS suggests that the company is expected to generate stronger profits this year. This points to improving financial performance, with Ashok Leyland Limited anticipated to deliver better earnings than it did in the prior year.

Price projections:

Price projections for ASHOKLEY
Price projections for ASHOKLEY

Throughout its recent performance, ASHOKLEY's price has been consistently close to the lower range of projected values. This suggests that the company may face challenges in achieving higher valuations in the eyes of investors.

Recommendation changes over time:

Recommendations trend for ASHOKLEY
Recommendations trend for ASHOKLEY


Analysts' buy bias toward Ashok Leyland Limited suggests the stock is seen as a solid investment, potentially motivating investors to consider it for their portfolios. With this positive outlook, Ashok Leyland Limited is likely to be viewed as a secure place to allocate funds, driving further interest in the stock.