{"id":47122,"date":"2024-10-27T16:46:00","date_gmt":"2024-10-27T11:16:00","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=47122"},"modified":"2025-11-07T14:00:12","modified_gmt":"2025-11-07T08:30:12","slug":"ashok-leyland-fundamental-analysis","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/ashok-leyland-fundamental-analysis\/","title":{"rendered":"Ashok Leyland Fundamental Analysis"},"content":{"rendered":"
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Introduction:<\/h2>\n\n\n\n

The rising middle class and the increasing youth population are leading to a high demand in India\u2019s automobile sector. The indicative index, NIFTY<\/a> Auto\u2019s yearly gains of 51.71% as of 18 October 2024, shows the sector’s growth and also reflects a growing investment opportunity in the automobile manufacturing industry. <\/p>\n\n\n\n

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Source: NSE<\/a><\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

The industry opportunity can be leveraged by investing in automobile manufacturing companies like Ashok Leyland, India\u2019s second-largest commercial vehicle manufacturer. But what is Ashok Leyland share price? How stable is the company, and what does the fundamental analysis<\/a> of Ashok Leyland say? Let\u2019s find out. <\/p>\n\n\n\n

Overview of Ashok Leyland Limited:<\/h2>\n\n\n\n

Ashok Leyland is the Hinduja group’s flagship company, with a strong presence in the medium and heavy commercial vehicle (M&HCV) market. It ranks as the fourth largest bus maker in the world and the 19th largest truck manufacturer. Recently, it was recognized as the 34th-best brand in India. Headquartered in Chennai, Ashok Leyland operates nine manufacturing plants\u2014seven in India and one in the UAE and UK.<\/p>\n\n\n\n

The company has a broad portfolio in the auto industry with product concepts that set commercial vehicle (CV) benchmarks. In FY24, it held a 31% market share in the M&HCV segment and 20% in the LCV segment. Ashok Leyland also plays a key role in defense, supplying the largest fleet of logistics vehicles to the Indian Army and partnering with armed forces worldwide. Its portfolio includes diesel engines for industrial, genset, and marine uses, along with electric vehicles through Switch Mobility.<\/p>\n\n\n\n

The company has one of the largest networks in the commercial vehicle industry, with 52,863 touchpoints, including 1,748 exclusive ones and 11,207 outlets for Leyparts. Additionally, Ashok Leyland runs driver training institutes across India, having trained over 8,00,000 drivers to date. <\/p>\n\n\n\n

Share Holding Pattern:<\/h3>\n\n\n\n

The shareholding pattern for the company as of September 2024 is as follows-<\/p>\n\n\n\n

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Source: Company Report<\/a><\/figcaption><\/figure>\n\n\n\n

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Key Management Personnel:<\/h3>\n\n\n\n

Ashok Leyland was founded by Raghunandan Saran in Chennai, where it began as \u2018Ashok Motors\u2019. The leadership baton currently lies in the hands of the following executives-<\/p>\n\n\n\n

Mr. Dheeraj G. Hinduja (Executive Chairman):<\/h3>\n\n\n\n
    <\/ol>\n\n\n\n

    Mr. Dheeraj Gopichand Hinduja earned his B.Sc. (Hons) in Economics and History from University College, London, in 1993. He represents the Hinduja Group, and his expertise includes global<\/a> business strategies, building and transforming organizations, and attracting top Boards and management talent. <\/p>\n\n\n\n

    Mr. Gopal Mahadevan (Director):<\/h3>\n\n\n\n
      <\/ol>\n\n\n\n

      Mr. Gopal Mahadevan is a Chartered Accountant and Company Secretary with 35+ years of experience in finance across various industries. He has worked in manufacturing, internet services, financial services<\/a>, and project companies. Throughout his career, Mr. Gopal has been part of leading organizations like Thermax, Amara Raja Batteries, Sify, Sanmar Group, and TTK Pharma. He also serves on the board of multiple companies within the Ashok Leyland Group.<\/p>\n\n\n\n

      Mr. Shenu Agarwal (MD & CEO):<\/h3>\n\n\n\n
        <\/ol>\n\n\n\n

        Mr. Shenu Agarwal is an NIT Kurukshetra graduate with Honors and holds an MBA from Duke University, USA. He brings over 25 years of hands-on experience in Sales, Marketing, R&D, Product Management, Strategy, Project Management, New Business Start-ups, and Strategic Tie-ups. Previously, he served as the President of Agri Machinery and Construction Equipment at Escorts Kubota Limited.<\/p>\n\n\n\n

        Ashok Leyland Financials:<\/h2>\n\n\n\n

        Revenue (Gross Sales):<\/h3>\n\n\n\n
          <\/ol>\n\n\n\n

          The company\u2019s revenue has been growing steadily since 2020-21. It reached its highest-ever sales revenue of Rs.38,367 crore in FY24, marking a 6% increase from the previous year. This growth came from selling 1,94,555 vehicles, 32,374 engines, and 3,469 spare parts and other items.<\/p>\n\n\n\n

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          Source: Annual Report<\/a><\/figcaption><\/figure>\n\n\n\n

          <\/p>\n\n\n\n

          EBITDA:<\/h3>\n\n\n\n
            <\/ol>\n\n\n\n

            The company\u2019s EBITDA as of FY2024 was Rs.4607 crore, an all-time high level with a 57% growth from FY2023. Additionally, it was Rs.911 crore for the quarter ending June 2024. Over the years, the EBITDA trend for the company has been as follows-<\/p>\n\n\n\n

            \"\"
            Source: Annual Report<\/a><\/figcaption><\/figure>\n\n\n\n

            <\/p>\n\n\n\n

            Profit After Tax:<\/h3>\n\n\n\n
              <\/ol>\n\n\n\n

              The company posted a record profit (PAT) of Rs.2,617 crore, its highest ever. The previous record was Rs.1,983 crore in FY19. This marks a 90% growth compared to the previous year. As of the quarter ending June 2024, this figure had already reached Rs.526 crore. Over the past few years, the trend in the company\u2019s PAT has been as follows-<\/p>\n\n\n\n

              \"\"
              Source: Annual Report<\/a><\/figcaption><\/figure>\n\n\n\n

              <\/p>\n\n\n\n

              Key Financial Ratios for Ashok Leyland:<\/h3>\n\n\n\n

              As of the financial year ending 31st March 2024, the key financial ratios of the company are as follows:<\/p>\n\n\n\n