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Ashok Leyland share price saw a steep 50% fall on July 16, 2025 as of 11:45 AM. It happened after the stock readjusted to ₹124.20 from its last level of ₹251. However, this fall was not of poor performance or poor fundamentals, but as a result of Ashok Leyland’s bonus issue of 1:1. Expectedly, the price reduced by half while the number of shares doubled, keeping the shareholder stake unchanged.
In May 2025, the company announced the 1:1 bonus issue during the Q4 earnings release. Shareholders who owned Ashok Leyland stock as of the record date of July 16 are entitled to one extra share for each one they own. The bonus shares will be credited on July 17 and available for trading from July 18.
So, though the share price fell by half, the total market value of investor holdings does not change. For example, an investor who held one share for ₹100 will now possess two shares for ₹50 each. This is the first bonus issue from Ashok Leyland in the last 14 years, with the previous one having occurred in 2011.
On the NSE, Ashok Leyland stock opened at ₹125.40, touched a high of ₹125.90, and a low of ₹122.70 on the trading day. The volume-weighted average price (VWAP) stood at ₹123.90. Trading volume crossed 9.34 million shares with a turnover of ₹116.01 crore.
The upper circuit price for the stock was ₹137.95 while the lower circuit price was ₹112.90. The 52-week high and low for Ashok Leyland shares are ₹132.33 and ₹95.93, respectively. The all-time high is ₹264.65. At the same time, the all-time low is ₹1.70.
Ashok Leyland share price chart as of 12 PM is as follows:
The company saw a 38.4% increase in net profit at ₹1,246 crore in Q4 FY25 from ₹900 crore in the corresponding quarter previous year. Revenue also increased by 5.7% to ₹11,906.7 crore on the back of good performance in the commercial vehicles segment.
The stock’s TTM EPS of ₹10.58 represents 25.09% YoY growth. The P/E of 11.74 is dramatically lower than the sector's 36.94, and its P/B is 3.54. A 5.03% dividend yield for Ashok Leyland shares increases its investor attractiveness.
Also Read: Ashok Leyland Share Price Dips to ₹250.25, Declines 1.07% Before Bonus Record Date
Ashok Leyland's market cap is ₹36,471 crore. 20-day average volume is 5.12 million shares, with an average delivery of 54.95%. High delivery indicates a lot of investors holding the stock and not trading short-term, reflecting long-term confidence.
Analyst sentiments remain positive towards the stock. 54% of 37 analysts rate it a 'Buy', 24% an 'Outperform'. Just 16% advise holding, 3% each consider it a 'Sell' or 'Underperform'. Experts point to good earnings, enhancing margins, and the shareholder-friendly bonus issue as indicators of a well-managed, growth-ready business.
In spite of the price change following the bonus issue, the fundamentals of Ashok Leyland are still good. The company has shown consistent growth in earnings, operational effectiveness, and industry leadership. Analysts project a potential upside to ₹140–₹180 by the end of 2025. In the short term, attention will turn to whether the stock stabilizes after bonus trading or not.
Investors need to watch out for future earnings, policy action impacting the auto space, and macro trends. If commercial vehicle demand remains robust, Ashok Leyland may recover its pre-bonus adjusted levels in the next few quarters.
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1. What is the price target of Ashok Leyland in 2025?
Analysts have mixed views on Ashok Leyland's price target for 2025. Based on current financials and future growth expectations, estimates range between ₹140 and ₹180. The recent 1:1 bonus issue has adjusted the stock price, but not its value. Continued strong performance, rising profit, and demand in the commercial vehicle segment could support upward movement in the coming quarters.
2. Did Ashok Leyland give dividends?
Yes, Ashok Leyland has a strong history of rewarding shareholders through dividends. The company currently offers an attractive dividend yield of 5.03%, which is considered high in the automobile sector. Its consistent earnings growth and solid cash flow support regular dividend payouts, making it an appealing option for income-focused investors.
3. Why is Ashok Leyland share falling?
Ashok Leyland’s share price fell by nearly 50% on July 16, 2025, due to a 1:1 bonus issue, not because of weak fundamentals. The stock is now trading ex-bonus, meaning the price has been adjusted to reflect the additional shares issued. Investors received one extra share for every share held, so the total value of their holdings remains unchanged.
4. Is Ashok Leyland owned by Tata?
No, Ashok Leyland is not owned by Tata. It is part of the Hinduja Group, a prominent Indian conglomerate. Tata Motors, which also manufactures commercial vehicles, is a separate entity and a competitor to Ashok Leyland in the Indian and global markets.
5. When will Ashok Leyland bonus shares be credited and traded?
The bonus shares will be credited to shareholders on July 17, 2025, and they will be available for trading from July 18, 2025. The bonus issue was in a 1:1 ratio, meaning shareholders received one additional share for each share held as of the record date, July 16, 2025.
