Ashok Leyland, a leading commercial vehicles maker in the automobile industry, is going to turn ex-bonus for the first time in 14 years for its upcoming 1:1 bonus ratio.
The midcap stock is currently below Rs 250 levels, and has a strong return on equity (ROE) of 32.72%. Experts are optimistic about Ashok Leyland as the near-term demand of the CV segment is expected to improve. Accordingly, the recommendation on Ashok Leyland is BUY ahead of its bonus ratio.
Ashok Leyland Share Price:
Last week, on July 11, Ashok Leyland stock price closed at Rs 246.25 apiece on BSE, down by 1.4% with a market cap of Rs 72,311.98 crore. The stock is still near its 52-week high of Rs 264.70 apiece, while it surged sharply from its 52-week low of Rs 190.40 apiece.
Its price-to-equity ratio is around 21.89x, while return on equity (ROE) is at 32.74%. YTD, the stock has rallied by 17.7%.
Ashok Leyland Bonus Issue:
Ashok Leyland has declared a bonus issue of a 1:1 ratio. For this, the company has fixed Wednesday, July 16, 2025, as the record date for determining the eligible shareholders for allotment of Bonus Shares.
Further, by SEBI circular dated September 16, 2024, the deemed date of allotment of Bonus Shares shall be Thursday, July 17, 2025, and these Bonus Shares will be made available for trading on the next working day of allotment i.e. Friday, July 18, 2025.
This will be the first bonus issue by Ashok Leyland in 14 years. The first time Ashok Leyland turned ex-bonus was on August 2, 2011, in the ratio of 1:1.
With the upcoming bonus issue, Ashok Leyland’s stock will be adjusted accordingly.
Buy Ashok Leyland Stock Price?
According to Emkay Global’s report, Ashok Leyland targets 35% MHCV market share in the medium term (30.7% in FY25), while also improving its profitability (aims for mid-teens margin vs 12.7% in FY25) aided by improving mix/vehicle premiumization, operating leverage, sustained cost reduction measures, and higher non-vehicle (non-cyclical) revenue – this reaffirms the stance around enhanced focus on profitable growth in the CV industry as opposed to discount-led volume growth. Growth comeback in MHCVs following the 2Y consolidation, coupled with enhanced focus on profitable volume growth, is likely to act as a catalyst for AL.
On the valuation, the analysts here said, “We believe that an improving CV outlook and sustained efforts toward profitable (value-led) volume growth (thereby also strengthening the balance sheet), amid the continued shift toward higher-tonnage vehicles and supported by higher non-vehicle (non-cyclical) revenue, could act as a re-rating catalyst for AL. We maintain BUY with TP of Rs280.”
About Ashok Leyland Ltd:
Ashok Leyland, flagship of the Hinduja group, is the 2nd largest manufacturer of commercial vehicles in India, the 4th largest manufacturer of buses in the world, and the 19th largest manufacturer of trucks. A US$4.5 billion company, that has a 75 year legacy, and a footprint that extends across 50 countries, Ashok Leyland is one of the most fully integrated manufacturing companies this side of the globe.