Ashok Leyland Limited
Ashok Leyland Limited Fundamental Analysis
Ashok Leyland Limited (ASHOKLEY.NS) shows moderate financial fundamentals with a PE ratio of 26.43, profit margin of 6.18%, and ROE of 24.53%. The company generates $533.8B in annual revenue with moderate year-over-year growth of 6.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ASHOKLEY.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakASHOKLEY.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakASHOKLEY.NS trades at a premium to fair value.
Growth Score
ExcellentASHOKLEY.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateASHOKLEY.NS shows balanced financial health with some risks.
Profitability Score
WeakASHOKLEY.NS struggles to sustain strong margins.
Key Financial Metrics
Is ASHOKLEY.NS Expensive or Cheap?
P/E Ratio
ASHOKLEY.NS trades at 26.43 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ASHOKLEY.NS's PEG of 18.34 indicates potential overvaluation.
Price to Book
The market values Ashok Leyland Limited at 6.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.56 times EBITDA. This is generally considered low.
How Well Does ASHOKLEY.NS Make Money?
Net Profit Margin
For every $100 in sales, Ashok Leyland Limited keeps $6.18 as profit after all expenses.
Operating Margin
Core operations generate 19.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.53 in profit for every $100 of shareholder equity.
ROA
Ashok Leyland Limited generates $3.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ashok Leyland Limited generates limited operating cash flow of $-51.29B, signaling weaker underlying cash strength.
Free Cash Flow
Ashok Leyland Limited generates weak or negative free cash flow of $-64.45B, restricting financial flexibility.
FCF Per Share
Each share generates $-10.97 in free cash annually.
FCF Yield
ASHOKLEY.NS converts -7.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
18.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How ASHOKLEY.NS Stacks Against Its Sector Peers
| Metric | ASHOKLEY.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.43 | 25.85 | Neutral |
| ROE | 24.53% | 1270.00% | Weak |
| Net Margin | 6.18% | -41768.00% (disorted) | Weak |
| Debt/Equity | 4.33 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.35 | 10.04 | Neutral |
| ROA | 3.88% | -1493983.00% (disorted) | Weak |
ASHOKLEY.NS outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ashok Leyland Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
122.67%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
820.76%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-66.55%
Industry Style: Cyclical, Value, Infrastructure
Declining