Ashok Leyland Ltd (ASHOKLEY) — share price & stock analysis

Market cap

₹95,344 Cr

P/E

25.6×

ROE

28.1%

vs own 10-yr valuation

60th pctile

Book value / share

₹24.2

EPS (TTM)

₹6.34

10-yr median P/E

24.4×

Revenue (FY26)

₹56,362 Cr

Profit after tax (FY26)

₹3,721 Cr

Weinstein stage

Stage 3 (6 weeks)

Data as of

1 July 2026

2 of the 6 things we track are currently moving the right way — some things working, some not.

Where the levels actually stand: ROCE 14% — decent; real debt (4.49× equity); margins at an all-time high. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

The business grew faster than the stock

Since Jun 2016, earnings per share grew 296% while the stock is up 227%. The business has outrun its own share price.pricettm_eps

When profits grow faster than the price, the stock quietly gets cheaper while doing better — the market hasn’t fully caught up.

Today’s P/E of 25.6× is the middle of its own range against its own 10-year history (60th percentile) — neither a bargain nor a stretch, by its own standards.pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (24.4×).

The uptrend is stalling — the price is topping out

Price trends have a life cycle: they base (1), advance (2), top out (3) and decline (4). This chart is in Stage 3: topping — 6 weeks so far.stage

Stage 3 is where uptrends go to die or rest — the price chops sideways while the average flattens. The next decisive move sets the story.stage

Beating NIFTY 500 for 2 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Losses, then a rebuild: profits are at an all-time high

Over 12 years, sales went from ₹11,859 Cr to ₹56,362 Cr (about 14% a year), and profit from ₹−222 Cr to ₹3,721 Cr.revenuenet_profit

The books show real losses in FY14 and FY15 and FY21 and FY22 (worst: ₹−285 Cr). Everything about today’s cheap-looking numbers must be read against that history — the recovery is what you are buying.net_profit

Sales grew 17% last quarter — the 6th straight quarter of growth

Mar 26 sales were ₹17,246 Cr, up 17% on the same quarter last year.revenue

That makes 6 quarters of growth in a row — this is a trend, not a blip.revenue

Margins have been rebuilt — 10.5% in FY22 to 19.1% now

Of every ₹100 of sales, the company keeps ₹19.2 as operating profit (a year ago it kept ₹20.4).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 10.5% in FY22 and has been rebuilt to 19.1% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin moved the same way (39% → 38%), so this is about input costs and pricing power — the raw-material equation worsened.gpm_pctopm_pct

Profit grew 11% last quarter

Mar 26 profit after tax was ₹1,381 Cr, up 11% year on year.net_profit

Profits on paper, cash lagging behind

Over the last 4 profitable years, the business reported ₹11,159 Cr of profit and collected ₹−15,524 Cr of operating cash — about -139% conversion (1 loss year excluded — a negative denominator would flatter the ratio).operating_cash_flownet_profit

The wrinkle is the latest year: FY26 collected ₹−4,895 Cr against ₹3,721 Cr of reported profit — about -132%. One year isn’t a trend, but it is the line to watch.operating_cash_flownet_profit

The cash cycle is stable

One rupee now takes about -30 days to go out the door as materials and come back as collected cash — down from -24 days the year before.cash_conversion_cycle

The biggest mover: customers paying faster (25 → 20 days).debtor_days

Steady, unhurried investment

The productive asset base has gone from ₹7,573 Cr (FY14) to ₹10,826 Cr, with another ₹549 Cr of capacity under construction right now.fixed_assetscwip

The build is bigger than the cash engine: investing outflows (₹11,640 Cr) exceeded operating cash (₹−11,025 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Debt is building — watch this

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹449 — total borrowings have grown from ₹8,500 Cr to ₹63,936 Cr over the window.borrowings

Every ₹100 kept in the business earns ₹14 — decent, not special

Return on capital employed is 14.0% (a year ago: 14.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

The owners aren’t moving

Promoters hold 51.5%, essentially unchanged. Foreign funds own 24.6%, domestic funds 13.1%.promoters_pctfiis_pctdiis_pct

Institutions buying while the story develops is the market’s quiet vote of confidence — they meet management, you don’t.

Meanwhile domestic funds have been the sellers — from 20.8% to 13.1% over the window. Someone on the other side of the table disagrees; both sides count.diis_pct

Strong on the data — worth the deeper look if the story keeps its promises

The numbers lean positive, and the price hasn’t fully caught up with the improvement.

Best thing in the data: sales rising (₹14,696 Cr → ₹17,246 Cr).revenue

Biggest worry: cash generation falling (₹128 Cr → ₹−4,895 Cr).operating_cash_flow

One dissent worth hearing: our growth at a price lens reads negative — “Growth & Value: 6/20 (non-financial). PEG 2.57 (PE 25.6 / TTM 10.0%) → 1/6. Stalwart (PAT YoY 10.8%, MCap ₹95K Cr) → 2/4. GARP: ROCE 13.8%, PAT growth 10.8%, PE”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data