Latest news with #AshokLeylandLtd
Mint
12 hours ago
- Automotive
- Mint
Ashok Leyland is in top gear on margin outlook, potential GST cuts
Ashok Leyland Ltd's shares have risen 11% over the past four trading sessions and hit a new 52-week high of ₹134.31 on Wednesday—not without reason. First, the management's commentary, especially on the margin scenario, in the recently held June quarter (Q1FY26) earnings call, was encouraging. Second, the anticipated cuts in the goods and services tax (GST) rates could potentially lower the on-road prices across auto segments, thus spurring demand, which is expected to benefit many companies, including Ashok Leyland. For the commercial vehicle (CV) maker, profit margin expansion has been a key focus area. For FY26, the management's 'overall aspiration would be to beat the last year's margins by a handsome margin". Its medium-term goal is to achieve a mid-teen Ebitda margin. For perspective, Ashok Leyland's FY25 standalone Ebitda margin had expanded 72 basis points (bps) year-on-year to 12.7%. Q1FY26 Ebitda margin was up 52 bps to 11.1% even though demand was subdued. The metric dipped 393 bps sequentially as Q4 tends to be seasonally stronger. Kumar Rakesh, analyst at BNP Paribas Securities India said, Ashok Leyland has delivered year-on-year margin expansion for the fourteenth successive quarter in Q1FY26 even as we are yet to enter the next CV upcycle. 'A soft base in H2FY26, better defence business outlook, positive trends in lateral data and multiple product interventions should result in solid FY26 earnings growth," added Kumar in a report on 15 August. Q1FY26 Ebitda margin expansion was mainly led by the 150 bps improvement in gross margin to 29.4%. Despite material cost pressures created by steel safeguard duty and tariff volatility, gross margin improved due to cost-saving efforts, firm price realization and a better mix. However, higher staff costs and other expenses curbed Ebitda margin expansion. Thus, Q1 Ebitda growth came in at a modest 6.4%, which is still higher than the mere 1.5% growth in total operating revenue to ₹8,725 crore, aided by marginal growth in volume and blended price realization. As per the management, the company's MHCV (medium and heavy commercial vehicle) volumes excluding defence rose 2% year-on-year in Q1 versus 2% domestic industry volume drop on a high base. It expects MHCV industry to clock mid-single digit volume growth in FY26 and slightly higher than that for LCV (light commercial vehicle). The management is optimistic on the company's volume and margin uptrend in the second half of FY26 backed by factors like lower interest rates, improved capex and the company's upcoming new product launches. While Q1FY26 defence revenue fell to ₹120 crore from ₹400 crore in Q1FY25, orderbook stands at ₹1,000 crore and revenue should improve going ahead. Within subsidiaries, Switch India achieved profit-before-tax breakeven in Q1 and aims to be profit-after-tax positive in FY26. Switch India has an order book of over 1,500 buses. Ashok Leyland's shares have surged 21% so far in 2025 as investors are hopeful about volume growth. Cyclicality in the MHCV segment has been a concern for investors. But as Motilal Oswal Financial Services points out, 'Over the years, Ashok Leyland has effectively reduced its business cyclicality by focusing on non-MHCV segments." The broking firm expects that a net cash position will enable Ashok Leyland to invest in growth avenues in the coming years. Net cash as on 30 June was ₹800 crore. Still, slower-than-expected MHCV industry growth can weigh on the investor sentiment. The trends in replacement demand are worth tracking.
Mint
3 days ago
- Automotive
- Mint
Best stocks to buy today: Ankush Bajaj's top three recommendations for 19 August
On Monday, 18 August, the Nifty 50 surged 245.65 points or 1.00% to close at 24,876.95, while the Sensex advanced 676.09 points or 0.84% to settle at 81,273.75. The Nifty Bank also moved higher by 393.05 points or 0.71% to end at 55,734.90, reflecting selective accumulation in financials, though gains were comparatively modest. Top three stock picks by Ankush Bajaj for 19 August: Ashok Leyland Ltd (current price: ₹131.75) Why it's recommended: Ashok Leyland is showing strong bullish momentum, with the daily RSI at 67, MACD in positive territory, and ADX at 27, all indicating a robust trend. The stock has recently broken above resistance near ₹127, suggesting momentum continuation. Key metrics: Pattern: Breakout above recent resistance at ₹127 MACD: Positive, confirming buy momentum RSI: 67, in bullish zone ADX: 27, signalling a strong trend Technical analysis: The breakout structure, bolstered by strong momentum, points to further upside toward ₹139. Risk factors: Demand fluctuations in the commercial vehicle cycle, competition from peers, and higher debt levels that could weigh on free cash flow. Buy at: ₹131.75 Target price: ₹139 Stop loss: ₹128 Maruti Suzuki Ltd (current price: ₹14,068) Why it's recommended: Maruti Suzuki is in bullish territory with a daily RSI of 81, MACD at 180, and ADX averaging 12, highlighting momentum accumulation. The stock recently closed at a new lifetime high, indicating strong upward continuation. Key metrics: Pattern: New lifetime high breakout MACD: Strongly positive at 180 RSI: 81, showing overbought but sustained strength ADX: 12, signalling early trend formation Technical analysis: The crossover alongside market momentum supports potential upside to ₹14,575. Risk factors: Exposure to supply chain disruptions (especially EV components), rising competition in the SUV space, and potential margin pressure due to raw material costs. Buy at: ₹14,068 Target price: ₹14,575 Stop loss: ₹13,815 Eicher Motors Ltd (current price: ₹5,915) Why it's recommended: Eicher Motors exhibits strong bullish momentum characterized by a daily RSI of 73, MACD at 62, and ADX at 16, signalling an emerging trend. The stock has also recently reached a new lifetime high, reinforcing the bullish setup. Key metrics: Pattern: New lifetime high breakout MACD: Positive at 62 RSI: 73, indicating strong momentum ADX: 16, early-stage trend initiation Technical analysis: Sustained momentum and breakout signal suggest further upside potential. Risk factors: High valuations, rising input costs, and execution risks in scaling up international operations. Buy at: ₹5,915 Target price: ₹6,200 Stop loss: ₹5,780 Stock market wrap Sectoral trends reflected strong rotational momentum. While pockets like PSE (−0.38%), Healthcare (−0.08%), and Pharma (−0.05%) witnessed mild profit booking, high-beta segments stole the show. The Auto index surged 4.18%, Realty jumped 2.17%, and the Consumption index climbed 2.11%, signalling robust appetite for cyclical and consumption-driven plays. Stock-specific action was equally vibrant. Maruti led from the front with a stellar 8.75% rally, followed by Hero MotoCorp, which jumped 5.86%, and Bajaj Finance, up 5.08%—all riding strong sectoral tailwinds. On the flip side, select heavyweight names capped further upside, with ITC slipping 1.25%, L&T easing 1.14%, and Eternal falling 1.10%. Globally, the sentiment turned favourable as softer-than-expected US inflation data revived hopes of a September Fed rate cut, while at home, retail inflation cooled to an eight-year low of 1.55%. These twin positives strengthened investor conviction, enabling the Nifty to sustain momentum above the 24,600 mark despite divergences across sectors. Nifty technical analysis: Daily and hourly The Nifty 50 ended the previous session on a firm note, showing signs of resilience after recent volatility. On the daily timeframe, the broader trend continues to be guided by the moving average setup, where the 20-DMA at 24,753 still trades below the 40-DEMA at 24,832, keeping the medium-term structure cautious. However, momentum indicators are turning more constructive. The daily RSI has improved to 52, moving above the neutral 50 mark, while the MACD, though still negative at -115, shows further moderation in bearish momentum, suggesting that downside pressure is fading. On the hourly chart, the tone has clearly improved. The Nifty has given a positive crossover of the 20-HMA (24,729) above the 40-HEMA (24,683), which is an encouraging short-term signal. Price action has also confirmed a breakout above the hourly trendline, adding weight to the ongoing recovery attempt. The hourly RSI at 62 reflects healthy bullish momentum, while the hourly MACD at +94 is firmly positive, underscoring strong intraday buying interest. This structure indicates that as long as the index holds above immediate supports, the market could attempt a decisive move higher. The derivatives data, however, continues to lean slightly bearish. Total Call OI at 123.1 million remains higher than Put OI at 108.3 million, leading to a negative PE-CE OI difference of 14.8 million contracts. Call writers added 64.2 million contracts, while Put writers added 56.5 million contracts, creating a negative OI change difference of 7,709,000, reinforcing near-term supply pressure. The heaviest Call OI stands at the 25,000 strike, where the largest addition has also been seen, cementing it as the critical resistance level. On the Put side, maximum OI remains at 24,000, while the highest addition has shifted to the 24,800 strike, signalling that traders are gradually building support closer to current levels. Globally, cues remain mixed with US equities consolidating after recent highs, crude oil steady around $65-66 per barrel, and the rupee stable near 87.6, providing a supportive but neutral macro backdrop. Key Takeaways Supports: 24,720-24,680 (HMA/HEMA band) followed by 24,600. Resistance: 25,000 (major supply zone); above this, momentum could accelerate. Momentum bias: Daily indicators improving, hourly momentum strong. OI signals: Call writers dominant at 25,000, keeping upside capped unless breakout sustains. Market outlook The index is attempting to shift from consolidation to recovery. As long as the Nifty sustains above 24,720-24,680, the setup favours a test of 25,000. A sustained close above 25,000 could trigger a breakout rally towards 25,550, where the next major hurdle lies. Conversely, a close back below 24,680 would weaken the short-term momentum and shift focus back towards 24,600. Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Standard
3 days ago
- Automotive
- Business Standard
Ashok Leyland Ltd rises for third consecutive session
Ashok Leyland Ltd is quoting at Rs 131.86, up 8.12% on the day as on 12:49 IST on the NSE. The stock is up 2.42% in last one year as compared to a 1.38% spurt in NIFTY and a 0.72% spurt in the Nifty Auto index. Ashok Leyland Ltd gained for a third straight session today. The stock is quoting at Rs 131.86, up 8.12% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is up around 1.14% on the day, quoting at 24910.95. The Sensex is at 81378.81, up 0.97%. Ashok Leyland Ltd has risen around 5.66% in last one month. Meanwhile, Nifty Auto index of which Ashok Leyland Ltd is a constituent, has risen around 4.7% in last one month and is currently quoting at 24118.8, up 4.42% on the day. The volume in the stock stood at 613.05 lakh shares today, compared to the daily average of 89.15 lakh shares in last one month. The benchmark August futures contract for the stock is quoting at Rs 132.09, up 7.95% on the day. Ashok Leyland Ltd is up 2.42% in last one year as compared to a 1.38% spurt in NIFTY and a 0.72% spurt in the Nifty Auto index.
Business Standard
14-07-2025
- Automotive
- Business Standard
Sona BLW Precision Forgings Ltd Surges 3.99%
Sona BLW Precision Forgings Ltd has lost 7.32% over last one month compared to 0.76% gain in BSE Auto index and 1.75% rise in the SENSEX Sona BLW Precision Forgings Ltd gained 3.99% today to trade at Rs 465. The BSE Auto index is up 0.3% to quote at 52720.71. The index is up 0.76 % over last one month. Among the other constituents of the index, Ashok Leyland Ltd increased 1.36% and Bosch Ltd added 1.34% on the day. The BSE Auto index went down 7.8 % over last one year compared to the 2.51% surge in benchmark SENSEX. Sona BLW Precision Forgings Ltd has lost 7.32% over last one month compared to 0.76% gain in BSE Auto index and 1.75% rise in the SENSEX. On the BSE, 2517 shares were traded in the counter so far compared with average daily volumes of 68522 shares in the past one month. The stock hit a record high of Rs 767.8 on 23 Sep 2024. The stock hit a 52-week low of Rs 379.8 on 07 Apr 2025.
Time of India
07-07-2025
- Automotive
- Time of India
Stock Radar: Ashok Leyland stock trading near breakout area; likely to hit fresh record highs if momentum stays
Experts suggest buying Ashok Leyland shares. The stock is showing bullish signals on weekly charts. It recently broke out of a one-month range. A target price of Rs 295 is expected in the next 1-2 months. Technical analysis reveals a Pole and Flag pattern. Strong Q4 FY25 results also support the positive outlook. Ashok Leyland Ltd, part of the commercial vehicle space, is trading around the one-month breakout range and is staying above the same on the weekly traders can look to buy the stock for a target of Rs 295 in the next 1-2 months, suggest commercial vehicle stock hit a high of Rs 264 on August 27, 2024, but failed to sustain the momentum, closing at Rs 250 on July 4, recently bounced back from a multi-month
