Ashok Leyland Share Price Target 2025: Brokerage Retains BUY Call On Hinduja Group Firm - Check Target Price

Ashok Leyland, the commercial automotive manufacturer delivered a robust performance for Q4 FY25, on the back of a robust growth i domestic MHCV volumes, in line with the broader industry recovery.

The company had previously also paid a dividend of RS 4.25 per equity share in February while announcing bonus shares for its shareholders.

Ashok Leyland Q4 FY25 Results

Earlier, on May 23, the Hinduja Group firm, Ashok Leyland announced its quarterly results recording a 38.4% year-on-year (YoY) jump in its profit after tax (PAT) at Rs 1,246 crore as compared to Rs 900 crore in the corresponding period of the previous fiscal.

The company's EBITDA margin came at 15% for the fourth quarter of FY25 as against 14% in the year-ago period, recording a rise of 91 basis points (bps).

Demand Outlook Turns Positive: Emkay Global

According to Emkay Global's report, the demand outlook remained positive for Ashok Leyland owing too improved mix within MHCVs, cost-reduction measures, and continued expansion in non-vehicle/noncyclical revenues (defence, power solutions, and aftermarket).  

Ashok Leyland also indicated single-digit growth for MHCVs in FY26E (similar to Tata, with stronger growth in buses), with further scope for margin expansion on improving mix/vehicle premiumization, operating leverage, sustained cost-reduction measures, and higher non-vehicle revenues.

The brokerage upgraded Ashok Leyland's FY26E/27 EPS by 6% performance.

Ashok Leyland Shares: BUY Rating, Target Price

While retaining BUY rating, the brokerage recommended an increased target price of Rs 280 (from Rs 260).

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