Over the past few days, Ashok Leyland has been on a roll in the stock market, with investor sentiment gaining real momentum. A strong Q1 performance marked by a 13% jump in standalone net profit, reaching ₹593.73 crore, even though revenue growth was modest at 1.5% set the stage for renewed optimism.
This financial strength propelled the stock to rally nearly 7% in a single session, trading just a few percentage points shy of its 52-week high, a sign of solid market support.
Brokerages swiftly turned bullish. UBS and Choice Broking see up to a 15% upside from the current levels, while Avendus raised its target to ₹140, citing expansion-led demand and Ashok Leyland’s investments in alternate fuels and electric vehicles. Notably, Nirmal Bang maintained a “Buy” rating, pointing to the company’s most robust Q1 ever in revenue, EBITDA, and PAT, and emphasizing how diversification is helping cushion against cyclical swings.
On the trading floor, the stock has been one of the most active midcaps over 22 million shares changing hands in a single session. It opened around ₹125 and surged intraday to above ₹130, signaling strong momentum beyond short-term speculation.
There’s also a macro tailwind brewing: anticipation of GST reforms, particularly a potential cut from 28% to 18%, is boosting the auto sector broadly. Ashok Leyland, as a key commercial vehicle player, stands to benefit from any demand-led revival.
Here’s a quick snapshot:
- Q1 Highlights: Net profit up 13%, revenue up 1.5%.
- Stock Movement: Rally of ~7–8%, now trading near 52-week high.
- Broker Views: Targets raised to ₹140 (+15% upside), “Buy” ratings sustained.
- Market Activity: Highly liquid with strong intraday moves.
- Sectoral Tailwinds: GST reform buzz is supporting auto demand broadly.
All signals point toward sustained optimism. With solid fundamentals, buoyed market sentiment, and strategic positioning in EVs and alternative fuels, Ashok Leyland appears poised for further upside. Moreover, macroeconomic support from GST reform could add fuel to the fire, making this a forward-looking play worth watching.
