Ashok Leyland Bonus Issue: Ashok Leyland Ltd is coming up with a 1:1 Bonus Issue for its shareholders. Record Date for the Bonus Issue is yet to be announced. Other details and salient features of the Bonus Issue are given below.
🟢 1. Upcoming Bonus Issue
Ashok Leyland Bonus Issue
- Bonus ratio & timing: On 23 May 2025, the Board approved a 1:1 ratio bonus—one new Re 1 share for each existing Re 1 share—subject to shareholder approval via postal ballot
- Historical context: This is Ashok Leyland’s first bonus issue in 14 years, though the last one was also in a 1:1 ratio in August 2011
- Ex-bonus trigger: While the record/ex-bonus date is yet to be announced, it’s expected alongside the Q4 FY25 results
- Market reaction: Upon Board’s announcement, the share price jumped ~3–3.4%, reaching ~₹249.65
📈 2. Current Business Performance
Q4 FY25 Financials
- Profit growth: Standalone net profit soared 38% YoY to ₹1,246 cr, up from ₹900 cr—a healthy indicator of robust operations
- Sales performance: Q4 revenue rose 6% YoY to ₹11,907 cr, up from ₹11,267 cr
- Quarterly profits: In Q3, standalone profit was ₹763 cr—31% above estimates—supported by a strong export performance .
Longer-term trends
- Revenue leap: From around ₹19,454 cr in FY21 to an estimated ₹56,764 cr by FY25
- Operating efficiency: Operating profit margins rose to ~22% by FY25, from 10.5% in FY22
- Earnings growth: EPS projected to grow ~9.5% year on year over the next three years, supported by continued earnings growth (~9.4% annually)
🚀 3. Future Prospects
Strengths & Opportunities
- No. 2 driver: India’s second-largest commercial-vehicle manufacturer, with a presence in over 50 countries and 9 global plants
- EV push: Heavy investments in electric buses and LCVs—plan to spend ₹1,500 cr in five years, aiming for 20% EV penetration by 2025 and 50% by 2035
- Infrastructure tailwinds: Nationwide infrastructure projects are expected to boost demand for commercial vehicles
- Exports: Export markets continue to bolster volumes and profitability, helping offset domestic slowdowns
Challenges & Risks
- Revenue to dip: Analysts forecast modest revenue decline (~–0.6% CAGR), though earnings and margins rise
- Market competition: Strong rivalry from Tata Motors, Mahindra & Mahindra, and global entrants in EV space
- Commodity volatility: Raw material costs, especially steel, may impact margins—though Q3 saw lower costs aiding margins .
📊 4. Analyst Outlook
- Target prices: Broker consensus averages around ₹250–₹252, with upside potential of 5–6%; BOB Capital places target between ₹239–₹276
- Valuation: ROE is forecasted at ~26.8% in three years. Tech-based price targets suggest ₹255–₹262 in 2025 and ₹313–₹323 by 2026
🧭 Summary – Ashok Leyland Bonus Issue:
Ashok Leyland’s 1:1 bonus issue (pending shareholder vote), first in over a decade, reflects strong confidence in its business. Q4 performance shows healthy revenue (+6%) and profit growth (+38%), underpinned by export gains and margin improvement. Long-term prospects are bolstered by EV investments, infrastructure demand, and export expansion, despite competitive pressures and potential revenue softness. Analysts generally rate it a Buy, with ₹250+ target, while structural shifts in EV adoption and tighter cost controls will be key to sustaining growth.
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. News4You does not offer investment advice and does not encourage any action based on its content.
Read Also:
Federal Bank Share Price Target 2025,2030,2035,2040 – News4You
How to make maximum profit with minimum investment from the Stock Market ? – MoneyInsight
Also Read :
How to make money from share market? (indiatimes.com)
AGLI DUNIYA: शेयर बाजार से पैसे कैसे कमाए ?
Visit our Website regularly for more such Educational Research Articles:
News4You – News & Views On Personal Finance & Share Market
