It is the second largest commercial vehicle manufacturer in India, fourth largest manufacturer of buses in the world and 10th largest manufacturer of trucks globally. Operating nine plants, Ashok Leyland also makes spare parts and engines for industrial and marine applications.It is the second largest commercial vehicle company in India in the medium and heavy commercial vehicle (M&HCV) segment, with a market share of 32.1%.
The promoter shareholding now stands at 51%. Today the company is the flagship of the Hinduja Group, a British-based and Indian originated trans-national conglomerate.
The company has a strong market presence in countries like Bangladesh, Sri Lanka and Nepal, and in the Middle East countries where it exports 3600–4000 units a year.
Ashok Leyland exports medium and heavy commercial vehicles to the (GCC) Member States like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE,Countries like Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine, East And West Africa, Sri Lanka, Bangladesh, Nepal, Indonesia and Malaysia.
In 2016, the company announced its intentions for increasing its global footprint by planning to export one out of every three vehicles produced in India over the next 4–5 years and to set up assembly factories in Bangladesh, West Africa and East Africa over the next 2–3 years, in order to derisk cyclical market in India.
In 2016 the company launched the country's first indigenously produced fully electric bus, called Circuit. The bus is a zero-emission vehicle that can run 120 km on a single charge, and has an alert system that can signal if the bus is low on power. The bus will be introduced under the National Electric Mobility Plan with an aim of 20% penetration of electric or hybrid vehicles by this year.
According to my opinion, Ashok Leyland shares are looking strong from both fundamental and technical angles and it can hit Rs 112 in one year from its current Rs 43/- per stock levels. Driven by an increase in the addressable market, LCV volumes have the potential to grow 40-60% in FY21.
With the share price reaching lower levels, analysts say that the negatives around commercial vehicle cycle are already factored in and therefore, offer good entry point for long-term investors. Its debt-free balance sheet and healthy return ratios should also provide some support to the counter
Ashok Leyland has a debt to EBITDA ratio of 3.6 and its EBIT covered its interest expense 3.0 times.Over the last three years, Ashok Leyland saw substantial negative free cash flow, in total.
Even Ashok Leyland has also corrected by about 50% from its peak levels. However, even today it is slowing the downtrend. this whole quarter stock will be in fluctuation. That will be the wonderful opportunity to buy auto stocks or even Ashok Leyland.
Its a good dividend paying company, For the year ending March 2019 Ashok Leyland has declared an equity dividend of 310.00% amounting to Rs 3.1 per share. At the share price of Rs 52.35 this results in a dividend yield of 5.92%. The company has a good dividend track report and has consistently declared dividends for the last 5 years.
Buy Ashok Leyland share current share price around 43.00
per share and in my view it will goes to 165.00/- per share within 3year
which will 3 fold your investment in three year.
EPS stands 3.24/- per share
Promoter holds 51 % share
Mutual funds holding at 8% near. (favorite stock for almost all MF companies)
Ashok Leyland holds largest Market Capital in this price in automobile industry.
Book value per share is near about 33.45 per share consolidated
Its Current PE is 6.16 and current Nifty PE is 22.35, Which sense it will grow minimum up to 75% upside from current level.
Its 52 week high mark is 95/- and low is 33.70/-
Company annual growth rate is 13.90%.
Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Ashok Leyland's earnings over the next few years are expected to increase by 135%, indicating a highly optimistic future ahead.
for more technical:https://www.moneycontrol.com/india/stockpricequote/auto-lcvshcvs/ashokleyland/AL
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