M&M, Ashok Leyland hit record highs; zoom up to 58% from April lows

The management of Ashok Leyland expects demand to improve post-monsoon, led by strong traction in heavy-duty trucks for mining, construction, and logistics.

Share price of Mahindra & Mahindra, Ashok Leyland

 

Shares of Mahindra & Mahindra (M&M) and Ashok Leyland hit their respective 52-week highs, gaining up to 3 per cent on the BSE in Tuesday’s intra-day trade. These stocks have bounced back up to 58 per cent from their respective 52-week lows touched on April 7, 2025.

 

Among individual stocks, Ashok Leyland has rallied 3 per cent and hit a record high of ₹146.80 in intra-day trade. The stock price of the commercial vehicles (CV) company surpassed its previous high of ₹144.50 touched on September 23, 2025. It has bounced back 54 per cent from its 52-week low of ₹95.20 on the BSE.

 

 

Shares of M&M hit a new high of ₹3,725.50, gaining 2 per cent in intra-day trade. The stock price of Mahindra Group Company surpassed its earlier high of ₹3,723 touched on September 9, 2025. It has recovered 58 per cent from its 52-week low of ₹2,360.45 touched on the BSE.

 

Outlook, brokerages view on M&M, Ashok Leyland

 

Ashok Leyland’s market share is expected to improve in the medium and heavy commercial vehicle (M&HCV) and the light commercial vehicle (LCV) segments over the medium term, supported by healthy revenue growth driven by increasing volumes and operating margins sustained above 10-11 per cent.

 

Traditionally dominant in the M&HCV segment, Ashok Leyland entered the LCV market with products such as ‘Dost’ to tap into growing demand and secure long-term growth. Recently, the company launched a new 2.1 tonne LCV named ‘Saathi’ as LCVs gained a larger share of overall CV volumes.

 

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, according to ICRA.

 

The company’s revenue share from higher-margin non-CV and LCV businesses has increased, and volume growth has helped the company achieve improved margins, which are expected to sustain over the near-to-medium-term, the rating agency CARE Ratings said in its rationale.

 

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

 

Axis Securities remains positive on the long-term prospects of Ashok Leyland, factoring in a gradual recovery in the MHCV industry momentum and segmental diversification. The brokerage firm, therefore, arrived at a sustainable long-term volume guidance of 5 per cent CAGR growth over FY25–28E led by growth in export volumes. The brokerage firm has a 'BUY' rating on the stock with a target price of ₹152.

 

Meanwhile, analysts at Choice Institutional Equities believe the September quarter’s results demonstrate that M&M’s revenue outperformance is strategically driven by segment mix and pricing power, rather than mere volume expansion. This allows the company to successfully convert its strong topline growth into margin expansion. 

 

The brokerage firm increased FY26/27E EPS estimate by ~2.0/2.0 per cent, factoring in strong growth in Q2FY26. Hence, analysts maintain target price at ₹4,450, valuing the company at 25x (unchanged) the average of FY27/28E EPS, along with subsidiary valuation.  “We reiterate our ‘BUY’ rating on the stock, supported by M&M’s strategic focus on premium product portfolio expansion and anticipated recovery in rural demand,” the brokerage firm said.