Ashok Leyland stock up, hits lifetime high despite net profit decline in Q1; Nomura bullish

Ashok Leyland shares have zoomed 33 percent in three months.

Shares of Ashok Leyland rallied almost 7 percent in morning trade to Rs 248.20 to hit fresh all-time high despite a weak start to FY25.

The commercial vehicle major reported an 8.7 percent decline in standalone net profit, which fell to Rs 525.58 crore from Rs 576.42 crore in the same period of the previous financial year. This is a significant decline from the March quarter profit of Rs 900.41 crore.

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Despite this, Ashok Leyland reported a 5 percent year-on-year increase in revenue from operations, reaching Rs 8,599 crore for the April-June 2024 period, up from Rs 8,189 crore in the same period last year.

Follow its Q1, international brokerage Nomura issued a bullish call on the counter and recommended 'buy' with a price target of Rs 247 per share. Analysts have said that there is potential upside from the electric vehicle (EV) business.

The positive sentiment also comes after the management highlighted continued strong demand across all business units, with significant contributions to the top line from segments such as Power Solutions and Aftermarket. Defence and International Operations also played a substantial role in the company's performance. Key catalysts for future growth include improved commercial vehicle (CV) growth and double-digit EBITDA growth over FY25-26.

At about 11:28 am, shares of the company were trading at Rs 246, up 6.14 percent from the last close on the NSE. Ashok Leyland shares have zoomed 33 percent in three months.

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