Ashok Leyland’s stock nudged higher again on Friday, climbing 2.3% to close at Rs 189 and extending a five‑day winning streak.
Recent Price Movement
In the last five trading days the share price has risen about 8.2%. Over the past month the stock is up roughly 18%, and it has delivered a solid 60% gain over the last year, showing strong interest from investors.
Strong December Sales Drive Momentum
The jump follows a robust December sales report. The company sold 21,533 vehicles in December 2025, a 27% increase from the same month last year. Sales of medium‑ and heavy‑weight commercial vehicles rose 29% to 14,830 units.
Valuation Snapshot
- P/E ratio: 33.32 – investors are paying about Rs 33 for every Rs 1 of earnings.
- Price‑to‑Sales: 1.24 – a moderate value relative to revenue.
- Price‑to‑Book: 6.85 – the stock trades well above its book value, reflecting confidence.
Technical Indicators
The 14‑day Relative Strength Index (RSI) sits at 79.9, which is above the 70 threshold and suggests the stock may be a bit overbought in the short term. However, Ashok Leyland is trading above all eight key Simple Moving Averages, indicating strong underlying momentum and support.
Quarterly Financial Highlights
For the September 2025 quarter, revenue reached Rs 12,712 crore, up 12.9% year‑on‑year. Net profit rose 7.1% to Rs 756 crore, showing steady profit growth alongside higher sales.
What Investors Should Keep in Mind
The stock’s recent rally and upbeat fundamentals are encouraging, but the high RSI hints at a possible short‑term pullback. Retail investors may want to watch the price action closely and consider their risk tolerance.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.