Ashok Leyland rallies 16% in 1 month; market cap nears ₹1 trillion

Brokerages remain positive on the long-term prospects of Ashok Leyland, factoring in a gradual recovery in the MHCV industry momentum and segmental diversification.

Ashok Leyland share price today

 

Shares of Ashok Leyland hit a new high of ₹164.75, gaining 3 per cent on the BSE in Friday’s intra-day deal, extending its previous day’s 2 per cent up move. The stock price of the commercial vehicles (CV) company surpassed its previous high of ₹164.50 touched on December 2, 2025. In comparison, the BSE Sensex was up 0.38 per cent at 85,137 at 10:15 AM.

 

In the past one month, Ashok Leyland has outperformed the market by soaring 16 per cent, as against a 0.82 per cent rise in the BSE Sensex. The Ashok Leyland stock was also the top gainer among automobile stocks during the past one month.

 

 

A sharp rally in the stock price of the company has seen Ashok Leyland’s market capitalisation inch towards ₹1 trillion mark. The company’s market cap touched ₹96,782 crore in intra-day trade today.  CATCH STOCK MARKET UPDATES TODAY LIVE

What’s driving Ashok Leyland's outperformance?

 

Ashok Leyland’s management remains optimistic about the second half (October to March) of the financial year 2025-26 (H2FY26F) growth driven by Goods and Services Tax (GST) rate cut and improving sentiment in both medium and heavy commercial vehicle (MHCV) and light commercial vehicle (LCV) segments.

 

The management expects demand to improve post-monsoon, led by strong traction in heavy-duty trucks for mining, construction, and logistics. Stable freight rates, improving operator profitability and continued infrastructure spending provide strong tailwinds.

 

The Indian CV industry is optimistic about growth prospects for FY26 led by steady macro-economic environment and declining interest rates. Looking ahead, sustained demand from rural areas, an anticipated revival in urban consumption, expected recovery of fixed capital formation supported by increased government capital expenditure, higher capacity utilization, and healthy balance sheets of corporates and banks are expected to support growth,  Ashok Leyland said in its FY25 annual report.

 

Analysts at InCred Equities feel that the turnaround in truck transporters’ profitability and load availability to drive the two-year CV demand uptrend, where Ashok Leyland is better placed to win. With one year forward EV/EBITDA and P/BV valuations below the 10-year mean level, the brokerage firm maintains 'ADD' rating on the stock. However, currently, the stock trades above the target price of ₹157 per share.

 

Ashok Leyland’s MHCV volumes are estimated to have grown by 3–5 per cent year-on-year (YoY) in FY26, reflecting sustained demand momentum. Analysts at Axis Direct expect the company to maintain its market share at 31.1 per cent (vs 29.8 per cent in the previous year) over the next two years. In the LCV segment, market share improved to 15 per cent YoY, highlighting the brand’s strong competitive positioning and product excellence across the CV spectrum.  ALSO READ | Indoco Remedies shares rise 5% on receiving EIR for Patalganga API unit 

The brokerage firm remains positive on the long-term prospects of Ashok Leyland, factoring in a gradual recovery in the MHCV industry momentum and segmental diversification. Analysts, therefore, arrive at a sustainable long-term volume guidance of 5 per cent compound annual growth rate (CAGR) growth over FY25–28E led by growth in export volumes. We estimate Ashok Leyland to post Revenue/EBITDA/PAT growth of 6 per cent/8 per cent/8 per cent CAGR over FY25–28E on the back of incremental sales mix from non-cyclical business.

 

Choice Institutional Equities expect Ashok Leyland’s diversified portfolio, focus on premiumisation and improving export mix to drive sustained revenue and margin growth. With a revival in fleet replacement demand, infrastructure momentum and an expanding alternative fuel lineup, the company is well-positioned to deliver profitable, long-term growth in FY26E and beyond, the brokerage firm said.    ====================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.