Ashok Leyland share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Ashok Leyland share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned Ashok Leyland share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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Ashok Leyland Share Price Target 2022, 2023, 2024, 2025, and 2030
Ashok Leyland, flagship of the Hinduja group, is the second-largest manufacturer of commercial vehicles in India, the third-largest manufacturer of buses in the world, and the tenth-largest manufacturer of trucks. It had launched India’s first electric bus and Euro 6 compliant truck in 2016. With the largest fleet of logistics vehicles deployed in the Indian Army and significant partnerships with armed forces across the globe, the company helps keep borders secure.
It has ISO/TS 16949 Corporate Certification and is also the first CV manufacturer in India to receive the OBD-II (onboard diagnostic) certification for BS IV-compliant commercial vehicle engines, SCR (selective catalytic reduction), iEGR (intelligent exhaust gas recirculation), and CNG technologies.
It is the first truck and bus manufacturer outside of Japan to win the Deming Prize for its Pantnagar plant in 2016 and the Hosur Unit II being awarded the Deming Prize in 2017. Driven by innovative products suitable for a wide range of applications and an excellent understanding of the customers and local market conditions, the company has been at the forefront of the commercial vehicle industry for decades. The company’s widespread customer base is served through an all-India sales and service network.
The company is engaged in the manufacturing of commercial vehicles and related components. The company has a product range from 1T GVW (Gross Vehicle Weight) to 55T GTW (Gross Trailer Weight) in trucks, 9 to 80 seater buses, vehicles for defense and special applications, and diesel engines for industrial, genset, and marine applications.
Share Holding Pattern
Ashok Leyland Share Price Target 2022
The adverse economic impact of the COVID 19 pandemic across sectors characterized the performance of business and industry last year. The Commercial Vehicle sector was no exception. Though there were green shoots in some segments for a brief period, there were additional challenges caused by the introduction of more expensive BS6 emissions, more prudent credit calls in the financing, and regional movement restrictions. During the last quarter, when sentiments seemed to look up, the global shortage of semiconductors and the second wave of COVID which extended to the rural areas, triggered a setback for the CV business.
In line with industry trends, Ashok Leyland has to resort to selectively plant shut down due to lockdown and low demand as needed. While vaccination drive is expected to be positive, the period of recovery to the pre-Covid era is uncertain and the plans for Company during 2021-22 are being carefully calibrated with emphasis on capability building. The overall total industry volume (TIV) of the commercial vehicle market in India posted a drop of 20.8% YoY, constituting a 28.4% drop in the M&HCV segment & a 17.3% drop in the LCV segment.
Sale to International Operations fell by 16.6% over last year driven by a 21.4% fall in M&HCV and a 13.8% fall in LCV. Ashok Leyland sold 46,043 M&HCVs in the domestic market (2,723 M&HCV Buses and 43,320 M&HCV Trucks including Defence vehicles), lower by 35.5% over the previous year. LCV with sales of 46,671 vehicles posted modest growth of 3.9% over the previous year. Ashok Leyland achieved a market share of 28.6% in M&HCV. The introduction of innovative i-Gen6 technology in BS6, the successful launch of the modular AVTR range, and a new Global platform Phoenix in record time are the product highlights of last year.
The first product on this global LCV platform was the Bada Dost which helped your Company gain market share by 2.1% and increased volume by 5% despite a 17.3% drop in total industrial volume (TIV) in its segment. Ashok Leyland set a record in FY2020 21 with an all-time high volume of 23,923 engines despite negligible sales in the first quarter due to lockdown. Ashok Leyland is proud to complete the execution of 500 Stallion 4×4 water bowsers and 100 ambulances in a record time of months under emergency procurement of the Indian Army. The aftermarket business of Ashok Leyland continued to deliver profitable growth last year. This will have a positive impact on Ashok Leyland share price target.
Early interventions at spare parts warehouses and with Supplier partners ensured continuation in the supply chain and revenue reached pre-Covid levels. Aftermarket channel saw record participation from independent garages and ended the year with the highest ever number of exclusive retail parts stores for the fifth year in a row. Service function achieved its highest service market share and continues to improve penetration in service products. By considering all these factors, Ashok Leyland share price target for 2022 is Rs 134.
|Ashok Leyland share price target 2022|
Ashok Leyland Share Price Target 2023
The Commercial vehicle market in India posted a drop of 20.8% YoY in total industry volumes (TIV), which was led by a 28.4% drop in the M&HCV segment & a 17.3% drop in LCV segments. FY20-21 started with lockdown across India, enforced to curb the spread of the COVID-19 virus. Demand plummeted to levels not seen and there was no industrial activity except for the movement of essential goods and medicines. The introduction of BSVI regulations leads to an increase in prices of vehicles. With an increase in prices, deferred customer purchases also aided in to collapse in demand.
Things started to improve in June when Unlock 1.0 was started with relaxations being provided to restart the economy. Supply chains broken because of lockdown slowly started to get restored. In Q2 FY21 things started to improve month on month with more and more relaxations being provided while COVID-19 cases continued to rise in India and globally. Manufacturing PMI & Service PMI started improving. Manufacturing PMI surged to 56.8 in Sep’20 the highest since Jan’12. This will have a positive impact on Ashok Leyland share price target.
Demand for MHCV trucks and LCVs started to increase month on month with several measures from the government and the RBI. Demand recovery in Q2 was led by LCVs and MHCV Trucks. Increasing COVID-19 cases ensured demand for MHCV Buses does not recover as people prefer individual modes of transport over the public. In Q3 economic activity continued to recover and gain momentum. The RBI’s survey pointed towards improvement in a capacity surge in some states which led to tightening of restrictions by the respective state governments.
Globally commodity prices started to surge thereby accentuating cost pressures for the manufacturing industry. Shortage of microprocessors affected production thereby leading to a small dip in CV sales. The LCV Trucks (0-7.5T Segment) dropped by 12.0% while the LCV Bus segment also de-grew by 74.0%. CV exports dropped by 16.6% over last year driven by a 21.4% fall in M&HCV Trucks & Buses and a 13.8% fall in LCV Trucks & Buses. Ashok Leyland share price target for 2023 is Rs 149.
|Ashok Leyland share price target 2023|
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Ashok Leyland Share Price Target 2024
In the market affected by the pandemic in the first half and with a partial recovery in 2nd half, your Company sold 42,483 M&HCV trucks (excluding Defence) in the domestic market in the current financial year. The 20% drop in volumes is directly attributable to the drop in total industry volume caused by disruption due to pandemics and sentiment. Ashok Leyland conducted BSVI vehicle launches to showcase its wide product portfolio with i-Gen6 technology, to reinforce its brand promise of “Aapki Jeet Hamari Jeet”.
With new products, especially the AVTR range, Ashok Layland has established itself as a strong player in BS-VI. There were many noteworthy product launches in M&HCVs and ICVs which were well received during the year and helped Ashok Leyland to increase the addressable TIV. In the domestic M&HCV Bus segment, your Company continues to maintain overall leadership and sold 2,723 Buses.
Ashok Leyland regained the leadership in the STU segment with strong order wins from Gujarat & Orissa STUs. Ashok Leyland launched and established the performance of all new BSVI range for the buses. Ashok Leyland share price target for 2024 is Rs 169.
|Ashok Leyland share price target 2024|
Ashok Leyland Share Price Target 2025
In FY 2020-21, Ashok Leyland launched a new Global platform Phoenix in record time. The first product on this global platform was the Bada Dost and it helped Ashok Leyland to gain market share by 2.1% and increased volume by 5% despite a 17% drop in total industrial volume (TIV) in its segments. More products will be launched on this platform in the future. Despite the pandemic situation, Ashok Leyland continues to deliver best-in-industry SSI/ CSI, lowest defect, best-in-class low warranty cost, and high service retention through its network of 530 outlets, thereby achieving a service market share of 63%. Bada Dost was awarded CV of year and Pick up of the year award for the year 2020-21.
Ashok Leyland set new records in FY2020-21 with all-time high volumes of engines owing to a good monsoon season. A good recovery was observed in the Industrial equipment demand in the second half of the year due to a special focus on Infra development activities and pre-buy on account of BS CEV IV emission shift effective Apr-21. Overall Ashok Leyland set a record in FY 2020-21 with an all-time high volume of 23,923 engines despite negligible sale in the first quarter due to lockdown.
In FY20-21, Ashok Leyland supplied 928 units of completely built-up units (CBUs) including bulletproof vehicles and 962 kits. Your Company is proud to complete the execution of 500 Stallion 4×4 water bowsers and 100 ambulances in the record time of 3 months under emergency procurement of the Indian Army. Further, your Company is expanding its portfolio in Light Vehicles, new applications on super stallion platforms, and products specific to export markets. Ashok Leyland share price target for 2025 is Rs 187.
|Ashok Leyland share price target 2025|
Ashok Leyland Share Price Target 2030
As the country recovers from the pandemic, CV sales are expected to grow an inch closer to reaching pre-pandemic levels in FY22. It is also expected that as economic activities pick up, there will be greater demand for robust supply chain networks across the country, which would increase the demand for trucks. The announcement of a voluntary vehicle scrapping policy that is aimed at phasing out old vehicles is expected to translate into a marginal demand for new CVs in the short term.
In the long run, it would help in creating a mindset about the life of vehicles which will help the sector to generate additional sales volumes. 18,000 crore scheme for augmentation of public bus transport services in urban cities through PPP model should help in creating incremental demand for buses over short to medium term. Increased allocation for the FAME scheme should help encourage investments in EVs and help in their faster adoption.
The infrastructure segment is expected robustly through the execution of projects in the National Infrastructure Pipeline. This will have a positive impact on the sales of commercial vehicles, especially the tipper and haulage segments. The growth in the E-commerce sector has led to growth in the overall heavy commercial vehicles segment, and this trend is also set to continue in the coming years, in a much more pronounced manner. The E-commerce sector is projected to have more positive impact on the sales of LCVs & ICVs.
The changing landscape of the road logistics industry, with the proliferation of the hub-n-spoke model, has resulted in increasing demand for commercial vehicles having higher tonnage and multi-axle vehicles. Reforms carried out by the Government in several sectors including coal mining are expected to play a role in driving sales of HCVs especially the Tippers and haulage trucks segment. Commercialization of coal mining, introduction of seamless composite exploration, mining, and production regime for minerals is likely to drive this segment.
The commissioning of the Western & Eastern dedicated freight corridors is expected to shift the transportation of goods to rail from the road and hence could have a negative impact on the sales of MHCVs in certain applications. The announcement of increased axle load norms in the previous years has resulted in increased load carrying capacity of trucks. The impact of this is expected in the upcoming year as well but in a marginal manner. By considering all these opportunities, Ashok Leyland share price target for 2030 is Rs 415.
|Infosys share price target 2030|
Ashok Leyland Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Share Price Target|
|Ashok Leyland share price target 2022||Rs 134|
|Ashok Leyland share price target 2023||Rs 149|
|Ashok Leyland share price target 2024||Rs 167|
|Ashok Leyland share price target 2025||Rs 187|
|Ashok Leyland share price target 2030||Rs 415|
Frequently Asked Questions
What is the target of Ashok Leyland?
The target of Ashok Leyland for 2022 is Rs 134, the target of Ashok Leyland for 2023 is Rs 149, the target of Ashok Leyland for 2024 is Rs 167, the target of Ashok Leyland for 2025 is Rs 187, and the target of Ashok Leyland for 2030 is Rs 415.
Is Ashok Leyland a good stock to buy for long term?
Yes, Ashok Leyland is a good stock to buy for the long term. 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.
Should I invest in Ashok Leyland?
Yes, if you want to hold for the long term. 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.