Ashok Leyland

 History of Ashok Leyland

            It was founded in 1948 as Ashok motors which became Ashok Leyland in the year 1955. In 1896 Sumner and Spurrier  founded steam motor company in the town of Leyland in North West England. Their first product is steam powered lawn mower. In 1948 they start assembling Austin Martin Cars in India. In 1951 they launched Comet 350 model Bus, this buses are mostly owned by the Government. In early years their comet model trucks are used to ride across 17 countries and end the ride in  Sweden, stock home. they also introduce first Double Dekker bus in India.  In 1961 they introduce first A/C buses. They introduce new Technology in automotive industries like power steering and Air braking system for commercial vehicle's. This company was supported by Nehru, so this company also get contract for producing   6-4 Hippos model, 1000 trucks for Indian Defense. They also have the approval for producing 10,000 no's of Buses & Trucks  /Per Year. In 1976 they launch Viking model buses for celebrating the success of  Comet model buses, this is an India's first front door engine bus. In 1980  they launch tusker and torus model Heavy load carry Trucks. They also produce 70,000 stallion model trucks for Indian Military..

Today

            Shenu Agarwal is the new CEO. The headquarter was located in Chennai, Tamil Nadu.   Ashok Leyland is world 3th largest manufacture of Bus and Trucks. They export to Bangladesh, UAE, Japan, United states, Korea, Germany and Sri Lanka. They have 5 manufacture plants in India and 1 of each in UAE, Bangladesh & Sri Lanka. This company was owned by Hinduja Groups   

Products 

            Agriculture engine, Diesel generators, Industrial Engines, Marine Engine and Gas Genset,  petrol and Diesel engine Bus & Trucks, commercial vehicles and Electric bus and trucks was first introduce  in 2017 by Ashok Leyland.

Revenue

            Commercial vehicle make 88% and Finance service make 12% of the revenue. India acquired 89% and other countries produce 11% of the revenue. The OPM is around 12%  

Advantage

            This company introduce and implement new technology in their product so, it has many advantage to grow. They have strong sales and service network all around India. They often introduce new models and more efficient engines for the vehicles. 

            Now government of India order to scrap 15 years old  Vehicles, this may lead to gain more order for the company because 95% public vehicles and 90% military vehicles are produce by Ashok Leyland from 1968.

            Electric Vehicle are future of transport. They also have the solution, by EV vehicles. only 5% of commercial transport was power by EV. If the % increase, this also produce demand to grow the company.

            This company maintain healthy annual and Quarterly result and also provide constant  Dividend for the share holders. 

Disadvantage

            This company carry more debt. The total debt of the company is around 31,150 Crore. This company have moderate growth rate. If you invest in High price you can take return in more than 5 years. the competitor companies are TATA motors , Volvo, Eicher motors and Mahindra & Mahindra.      

Stock Target Price 

            The stock target price of Ashok Leyland is around Rs 200/-  in the financial year of  2026.