Ashok Leyland gains 2%, hits record high; should you buy, hold or sell?

The Hinduja Group automobile company - Ashok Leyland stock was quoting higher for the fourth straight trading day, and surged 6 per cent during the period.

Ashok Leyland share price today

 

Shares of Ashok Leyland hit a record high of ₹141.40, gaining 2 per cent on the BSE in Friday’s intra-day trade in an otherwise weak market on healthy business outlook. In comparison, the BSE Sensex was down 0.36 per cent at 82,716.30 at 09:54 am.

 

The stock price of the Hinduja Group automobile company was quoting higher for the fourth straight trading day, surging 6 per cent during the period. On Thursday, September 18, the stock crossed its previous high of ₹138.15 touched on September 8, 2025.

 

In the past six months, Ashok Leyland has outperformed the market and rallied 37 per cent. In comparison, the BSE Sensex was up 10 per cent and the BSE Auto index up 27 per cent during the same period.

 

 

Should you buy, hold or sell the stock?

 

Thus far in the month of September, Ashok Leyland’s stock price has appreciated by 11 per cent after the company announced its plans to invest in development and manufacturing of next-generation batteries, for both automotive and non-automotive applications, including energy storage systems.

 

In the backdrop of improving bilateral relations, Ashok Leyland has entered into a long-term exclusive partnership with CALB Group, one of the foremost battery technology companies in China.

 

Given that batteries account for ~30-40 per cent of the cost of an electric vehicle (EV), Ashok Leyland aims to achieve stronger cost control toward reducing reliance on imports/external suppliers. While further clarity on the intent is awaited, the investment appears unconvincing at first glance, as it represents a divergence from Ashok Leyland’s core CV business focus, analysts at Emkay Global Financial Services said. The brokerage firm reiterated its ‘buy’ rating on Ashok Leyland and raised the target price to ₹150 per share (₹140 earlier).

 

Meanwhile, the rate rationalisation marks a structural positive for the auto sector. With greater visibility of growth, ICICI Securities upgrade valuation multiples for Ashok Leyland and await volume green shoots before building the same in its forward estimates. The brokerage firm has a ‘buy’ rating on stock with a target price of ₹155 per share.

 

Reaffirmation of credit ratings/outlook of Ashok Leyland by CARE Ratings, ICRA

 

On September 13, 2025, Ashok Leyland in an exchange filing said, rating agencies CARE Ratings and ICRA reaffirmed the credit ratings /outlook which was previously assigned to the company.

 

Over the last decade, Asyhok Leyland has transformed itself from a South-centric to a pan India player and holds a strong market share in most of the regions that it operates in. Factors like enhanced product range, better product acceptance and revamping of the dealership network are expected to support volume growth and market presence going forward. Its light commercial vehicle (LCV) sales witnessed marginal decline in FY2025, post two years of healthy volume sales in the market. 

 

However, the expected increase in addressable market demand from agriculture and allied sectors are expected to support volume growth in FY2026. Ashok Leyland’s market share in LCV trucks segments was 12.4 per cent in Q1 FY2026 (vis-à-vis 9 per cent in FY2019). Bus volumes also witnessed healthy traction in the recent quarters with the improving replacement demand for old buses and higher orders from State Road Transport Undertakings (SRTUs) and private players, and the momentum is expected to sustain going forward, ICRA said in its rating rationale.

 

While the margins are expected to sustain at the improved levels in the near term, it remains vulnerable to any sharp volatility in raw material prices and the company’s ability to scale up the EV business profitably, the rating agency said.