Ashok leyland stock long

Ashok Leyland Ltd. is a prominent Indian manufacturer of commercial vehicles, including trucks and buses. Here's a comprehensive analysis of its current situation:

**Fundamental Analysis:**

- **Financial Performance:**
- **Profit After Tax (PAT):** In Q3 FY2025, Ashok Leyland reported a 31.3% increase in PAT to ₹7.63 billion, surpassing analysts' expectations of ₹6.66 billion. This growth was primarily driven by a significant rise in exports, which offset a 2.2% decline in domestic sales.
- **Revenue:** Revenue from operations increased by 2.2% to ₹94.79 billion in the same quarter.
- **Cost Management:** The cost of materials and services decreased by 2.9%, contributing to improved profitability.

- **Market Position:**
- Ashok Leyland holds a 31% market share in the Medium and Heavy Commercial Vehicle (M&HCV) segment and a 20% share in the Light Commercial Vehicle (LCV) segment as of FY24.

- **Valuation Metrics:**
- **Price-to-Earnings (P/E) Ratio:** The P/E ratio stands at 23.15, indicating a premium valuation compared to the industry average.
- **Price-to-Book (P/B) Ratio:** The P/B ratio is 5.55, reflecting a significant premium over the peer median of 3.53.

- **Analyst Ratings:**
- The consensus target price for Ashok Leyland is ₹252.90, suggesting a potential upside of approximately 13.36% from the current market price.

**Technical Analysis:**

- **Current Share Price:** As of February 24, 2025, the share price is ₹222.53.

- **Support and Resistance Levels:**
- **Support Level:** The immediate support is around ₹220, with a stronger support zone near ₹200.
- **Resistance Level:** The immediate resistance is near ₹230, with a stronger resistance around ₹250.

- **Price Performance:**
- Over the past month, the stock has risen by 7.12%.
- Over the past year, the stock has shown a 29.31% increase.

**Recent Developments:**

- In Q3 FY2025, the company reported a 31.3% increase in PAT due to higher exports, despite a 2.2% drop in total sales.

**Conclusion:**

Ashok Leyland has demonstrated robust financial performance, particularly in its export segment, contributing to its market leadership in the commercial vehicle industry. The stock is trading at a premium valuation, with analyst targets indicating potential for growth. Investors should monitor the company's export growth and cost management strategies, as well as broader economic factors influencing the commercial vehicle sector.