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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
Ashok Leyland Limited is an India-based company engaged in automobile manufacturing. The main activities of the Company relate to manufacturing, sales, vehicle and housing finance, Information Technology (IT) services, and services related to a wide range of commercial…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A middling, fast-growing business, priced for perfection — but flagged on governance.
Ashok Leyland is scored on the general / industrial framework. It keeps a slim 6.5% of every rupee of sales as net profit. Cash conversion lags the reported profit (CFO/PAT -1.32×) — worth a closer look. Free cash flow is worth about -11.8% of its market value.
Over the last 3 years revenue compounded at 11%/yr and profit at 40%/yr. Book value itself has compounded 20%/yr — the hallmark of a genuine compounder. Return on equity is an elite 24.4%. In the latest quarter profit fell 52% versus the prior quarter.
At 29× earnings, the stock sits at the 88th percentile of its own 3.6-year range — the expensive end of where it has historically traded. Today's price implies ~13%/yr earnings growth for a decade. The forensic screen raises 2 red flags: Only ₹-1.39 of cash per ₹1 profit over 4 years — earnings not converting to cash; 167% of pre-tax profit is other income, not operations.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 27.09 | 25.24 | worse |
| P/B | 7.09 | 6.75 | worse |
| EV/EBITDA | 13.52 | 13.58 | better |
| ROE | 24.37 | 19.65 | better |
| ROCE | 12.51 | 19.98 | worse |
| ROA | 3.69 | 13.64 | worse |
| Quick Ratio | 1.18 | 0.85 | better |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Maruti Suzuki | 29.8 | 3.7 | 12.3% |
| Mahindra & Mahindra | 19.1 | 4.2 | 19.8% |
| Bajaj Auto | 23.4 | 8.2 | 35.7% |
Revenue has grown every year across all 4 financial years shown. 11% CAGR over 3 years — steady double-digit compounder. Growth is accelerating — latest year outpaced the prior year's rate.
Net profit has risen every year — the hallmark of a compounder. Profit is growing faster than revenue (40% vs 11%) — margin expansion is at work.
Operating margin has expanded from 5% to 9% — the business is keeping more of each rupee earned.
ROE at 20% — the business earns well above its cost of equity. High ROE despite single-digit margins — an asset-turn play with high capital velocity. Capital efficiency improving — ROE up 7pp across the window.
Profit grew faster than EPS (40% vs 12%) — share dilution is eroding per-share value. 12% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
3 of 4 years had negative operating cash flow — profitability on paper may not translate to cash.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue fell 24% QoQ — could be seasonality or a genuine slowdown. Run-rate stepping up — recent quarters average 11% above earlier ones.
Profit fell 52% QoQ — one-quarter drops can be noise, but a pattern matters.
How today's P/E compares to the stock's own historical range. Dashed line = the 3.6y median.
Promoter holding at 51.5% — majority control intact. FIIs trimmed 4.5pp — foreign money is rotating out.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.