Ashok Leyland, India’s second-largest commercial vehicle manufacturer and a flagship of the Hinduja Group, has been in the spotlight in recent weeks. Its share price has surged to an all-time high of ₹135–₹136 in early September 2025, reflecting strong investor confidence, robust quarterly results, and aggressive investments in the electric vehicle (EV) and battery ecosystem.
In this blog, we analyze Ashok Leyland’s recent stock performance, the key factors driving its rally, financial updates, dividend policies, and what investors can expect in the near term.
📊 Latest Share Price Performance
As of September 6, 2025, Ashok Leyland’s stock trades around ₹135–₹136 per share, registering:
- 1-Day Return: ~+3.9%
- 1-Week Gain: ~+6.1%
- 1-Month Gain: ~+17–18%
The stock touched an all-time high of ₹135.40 on the BSE, powered by heavy buying interest. Analysts attribute this surge to a favorable technical setup, strong earnings, and future growth bets in the EV space.
🚀 Why Is Ashok Leyland Stock Rallying?
Several catalysts explain the bullish sentiment around the stock:
1. Bullish Technical Breakout
- Analysts at Angel One observed a Tasuki Gap breakout with RSI above 60, signaling strong momentum.
- Their recommendation: Buy around ₹129–₹131 with a target of ₹145 and stop-loss at ₹124.
- Traders see continued upside as long as volumes remain strong.
2. Strategic EV and Battery Investments
Ashok Leyland is positioning itself as a key player in India’s clean mobility transition.
- In September 2025, the company announced a ₹7,500 crore investment in Tamil Nadu to set up EV cell and battery manufacturing facilities, charging infrastructure, and R&D centers.
- A prior partnership with CALB (China) involved over ₹5,000 crore investment over 7–10 years to localize battery technology.
- These investments will help Ashok Leyland reduce dependence on imports while scaling up EV adoption in buses, trucks, and commercial fleets.
3. Robust Financial Performance
- Q1 FY26 Results:
- Net Profit: ₹593 crore (+12.9% YoY)
- Revenue: ₹8,724 crore (+1.4% YoY)
- FY25 Results:
- Revenue: ₹48,535 crore (vs ₹45,790 crore in FY24)
- Net Profit: ₹3,351 crore (vs ₹2,679 crore in FY24)
- EPS: ₹10.58 (vs ₹8.46 in FY24)
These results show steady growth despite cyclical challenges in the commercial vehicle market.
4. Shareholder-Friendly Moves
- Bonus Issue (1:1): Ex-date July 16, 2025
- Dividend: ₹4.25 per share (425%) declared in May 2025
Such policies enhance investor trust and keep the stock attractive for both short-term traders and long-term holders.
💹 Key Valuation Metrics
| Metric | Value (Sept 2025) |
|---|---|
| P/E Ratio (TTM) | ~23–25× |
| P/B Ratio | ~5–6× |
| ROE | ~25–29% |
| Dividend Yield | ~2.3–4.8% |
Ashok Leyland trades at fair-to-premium valuations compared to peers, supported by strong ROE and consistent dividends.
🌍 Strategic Outlook: EVs & Global Trade
- EV Leadership in Commercial Vehicles
- With aggressive investments in EV batteries, Ashok Leyland aims to dominate the electric bus and truck segment in India.
- Partnerships with state governments and fleet operators are expected to accelerate adoption.
- Export Growth
- The company continues to expand its presence in African and Asian markets.
- Demand for buses and defense vehicles contributes to export revenue stability.
- Domestic Demand Recovery
- Post-COVID, India’s infrastructure and logistics sectors are reviving, boosting demand for medium and heavy commercial vehicles (M&HCVs).
📈 Analyst Price Targets
- Angel One Target: ₹145 (short-term)
- Consensus Median Target: ₹136.5 (12-month forecast, range: ₹100–₹155)
- With technical strength and EV investment tailwinds, many analysts expect the stock to test ₹145–₹150 levels in the near future.
⚠️ Risks to Watch
While the outlook remains positive, investors should be cautious about:
- Cyclicality in CV demand: The sector is highly dependent on economic activity and infrastructure spending.
- Competition in EV space: Domestic rivals (Tata Motors, Eicher) and global players are entering aggressively.
- Battery supply chain risks: EV investments may take time to yield profitability.
✅ Final Verdict: Buy, Hold, or Sell?
Ashok Leyland is in a sweet spot:
- Technical charts show bullish continuation.
- EV investments and battery localization provide long-term growth triggers.
- Strong Q1 FY26 earnings and shareholder rewards boost confidence.
👉 For short-term traders, the stock looks set for ₹145–₹150 levels.
👉 For long-term investors, Ashok Leyland offers a solid opportunity in India’s EV-driven commercial vehicle future.
