auto
Ashok Leyland
ASHOKLEY · Nifty 50
₹159.57
Price 2026-06-17
At a Glance
Fundamental
60/100
ADEQUATE
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Ashok Leyland scores 60/100 on fundamentals (adequate). Ashok Leyland: BROAD EXPANSION regime.
Fundamental Score: 60/100 · ADEQUATE · 2 signals detected
DuPont Analysis
ROE 24.4% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 24.37% is strong leverage-driven and stable. Net margin of 6.2% × asset turnover of 0.56x × leverage of 7.1x. High leverage amplifies returns but increases risk.
What This Means
Net margin of 6.2% means the company keeps ₹6.2 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.56x means the company efficiently uses its assets to generate revenue. Leverage of 7.1x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
39.6%
Operating
17.6%
Net
6.2%
Gross margin 39.6% → operating margin 17.6% → net margin 6.2%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers -1.4x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
ADEQUATEInterest covered only 2.1x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 5.8x is high — monitor leverage.
Free Cash Flow
MODERATEFCF margin negative at -14.0% — spending more than earning. Check capex cycle.
Peer Comparison
Ashok Leyland is compared against 10 peers in the auto sector.
Key Watchpoints
Breaks above ₹168 (+5%)
Trend reversal confirmation
Breaks below ₹152 (-5%)
Further downside risk
Auto sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
One-off items significantly inflating reported profit. Core earnings may be much lower.
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only -1.4x net income. Profit not converting to cash — aggressive accounting possible.
Special charges of ₹1619K Cr. May indicate restructuring, impairment, or one-time costs.
Working capital is consuming significant cash. Operational efficiency declining.
Elevated risk score. Review audit, board, and shareholder rights metrics.
🔴 3 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes