Ashok Leyland Limited (ASHOKLEY) Fair Value & Analysis

Industrials · IN · Market cap ₹925B

Below-average quality, and screening another 30% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (₹155.12). The favourable scenario is already priced in.
• Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
• A fairly wide model range (₹82.61 to ₹155.12) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ₹44.79 – ₹208.37 · fair‑value band ₹82.61 – ₹155.12 · the ₹176.86 price screens above the ₹124.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

Full chart & analysis →

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Analysis

Ashok Leyland Limited (ASHOKLEY) currently trades at ₹176.86, while our model-based Fair Value estimate is ₹124.10, implying the stock looks roughly 29.8% overvalued today. We read business quality at 49/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Ashok Leyland Limited generated revenue of ₹564B at a net margin of 6.2%. Revenue grew 17.4% year over year. It earns a return on equity of 21.6%. Net debt stands at ₹577B. Fundamentals as of Jul 12, 2026

Our scenario range runs from ₹82.61 (bear case) to ₹155.12 (bull case); at ₹176.86, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 16% below its 52-week high and 58% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 12% fair-value upside, at -30%, ASHOKLEY screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples (₹118.19) versus DCF Models (₹16.23). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

Ashok Leyland Limited, together with its subsidiaries, engages in the manufacture and sale of commercial vehicles in India and internationally.

Full company description

Ashok Leyland Limited, together with its subsidiaries, engages in the manufacture and sale of commercial vehicles in India and internationally. It 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. The company 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, it trades in commercial vehicles; and offers manpower supply, air chartering, and IT services, as well as manufactures forgings and castings. Further, the company operates retail stores; and LeyKart, an e-commerce store for spare parts. The company was incorporated in 1948 and is headquartered in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Ashok Leyland Limited reported revenue of ₹561B in FY2026 versus ₹261B in FY2022, a compound +21.1%/yr. Reported net income was ₹34.7B in FY2026.

ASHOKLEY screens 30% overvalued. Compare with Caterpillar Inc →

Peer Group

Farm & Heavy Construction Machinery · 146 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Farm & Heavy Construction Machinery median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.