Ashok Leyland Stock Price Analysis and Quick Research Report. Is Ashok Leyland an attractive stock to invest in?

The Indian Auto Industry comes in the top 5 largest auto industries of the world. India is also a prominent auto exporter and has strong export growth expectations for the near future. The support from the government is providing the auto companies with a boost needed in their development. But will it sustain?

We can look into more details and dig a little deeper into the analysis of the stock of this sector. Ashok Leyland stock price today is Rs 120.35. Let’s look at how Ashok Leyland is performing and if it is the right time to buy the stock of Ashok Leyland with detailed analysis.

• The mainstream of revenue for Auto Sector is their sales, Ashok Leyland has reported poor sales growth of 1.0053 % and in the latest quarter sales was Rs 11906.71 Cr. To judge whether the company’s inventory is being sold or not and the sales picture is true, inventory turnover ratio plays a major role, which is 12.8687 times for Ashok Leyland . It is managing its inventory poorly . 
   
• Ashok Leyland reported Profit growth of 26.1824 % over the year, where the latest year profit is Rs 3303.29 Cr compared to the previous year of Rs 2617.87 Cr. The new permits by governments and increasing demand will lead to an increase in profits in the coming year.
   
• The operating profit of Ashok Leyland in the latest quarter is Rs 1790.96 Cr. It helps in measuring the company’s operating performance which is used to make financing decisions.
   
• Ashok Leyland has a healthy ROE of 32.6279 %. The ROE is an important financial parameter because Auto companies work with high equity investments. Also, they have to take huge debt to incur the research and manufacturing work so their Debt to Equity ratio should be evaluated. Ashok Leyland has a low Debt to Equity ratio of 0.1251.
   
• Ashok Leyland pays a dividend of 6.25 Rs per share. It tells us that a company likes to share profits with its shareholders. The dividend yield is low at 2.5966 %.
   
• The share of promoter in Ashok Leyland is high at 51.52 %, where the pledging is 41.15 %.
   
• What the market is willing to pay for the company for its earnings can be determined by PE multiple. Current PE of Ashok Leyland is 21.3974575517824 compared to the 5 year average PE of 26.09506 .
   
• Share Price: - The current share price of Ashok Leyland is Rs 120.35. One can use valuation calculators of ticker to know if Ashok Leyland share price is undervalued or overvalued.