ASHOKLEY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | ASHOKLEY | Market Cap | 1,17,359 Cr. | Current Price | 200 ₹ | High / Low | 203 ₹ |
| Stock P/E | 34.4 | Book Value | 19.6 ₹ | Dividend Yield | 1.56 % | ROCE | 36.5 % |
| ROE | 31.4 % | Face Value | 1.00 ₹ | DMA 50 | 177 ₹ | DMA 200 | 147 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | 0.14 % | PAT Qtr | 801 Cr. | PAT Prev Qtr | 594 Cr. |
| RSI | 66.4 | MACD | 5.65 | Volume | 1,76,25,945 | Avg Vol 1Wk | 1,46,52,002 |
| Low price | 95.2 ₹ | High price | 203 ₹ | PEG Ratio | 0.08 | Debt to equity | 0.12 |
| 52w Index | 97.0 % | Qtr Profit Var | 16.2 % | EPS | 5.74 ₹ | Industry PE | 38.8 |
📊 Financials: ASHOKLEY demonstrates strong fundamentals with ROCE at 36.5% and ROE at 31.4%, reflecting excellent capital efficiency. Quarterly PAT improved from ₹594 Cr. to ₹801 Cr., showing solid earnings growth. Debt-to-equity at 0.12 highlights low leverage. EPS of ₹5.74 is modest relative to its market cap of ₹1,17,359 Cr., but profitability trends are encouraging.
💹 Valuation: The stock trades at a P/E of 34.4, slightly below the industry average of 38.8, suggesting fair valuation. P/B ratio is ~10.2 (200/19.6), which is expensive compared to peers. PEG ratio of 0.08 indicates strong earnings growth relative to valuation, making it attractive. Dividend yield of 1.56% provides decent income support.
🏢 Business Model & Competitive Advantage: ASHOKLEY operates in the automotive sector, specializing in commercial vehicles. Its competitive advantage lies in brand strength, wide distribution, and leadership in buses and trucks. Strong profitability metrics and low debt enhance its long-term outlook, supported by infrastructure and logistics growth in India.
📈 Entry Zone: Technicals show RSI at 66.4 (approaching overbought) and MACD positive, with price trading well above DMA 50 & 200. Accumulation may be considered near ₹180–190 for long-term investors. Current levels are close to highs, so cautious entry is advised after a pullback.
Positive
- High ROCE (36.5%) and ROE (31.4%) indicate strong profitability.
- Quarterly PAT growth from ₹594 Cr. to ₹801 Cr. (+16.2%).
- Low debt-to-equity ratio (0.12) ensures financial stability.
Limitation
- P/B ratio (~10.2) indicates expensive valuation.
- EPS of ₹5.74 is modest relative to market cap.
- RSI at 66.4 suggests near-term overbought conditions.
Company Negative News
- Stock trading near 52-week high (₹203), limiting immediate upside.
- Valuation stretched compared to book value.
Company Positive News
- FII holdings increased slightly (+0.09%).
- DII holdings increased (+0.14%), showing institutional support.
- Strong trading volumes above average reflect investor interest.
Industry
- Automotive sector benefits from rising demand for commercial vehicles.
- Industry P/E at 38.8 is slightly higher than ASHOKLEY, showing fair valuation.
- Government push for infrastructure and logistics supports long-term demand.
Conclusion
🔎 ASHOKLEY is financially strong with excellent return metrics, low debt, and consistent profitability. While valuations are stretched relative to book value and technicals suggest near-term caution, fundamentals and industry tailwinds support long-term holding. Entry near ₹180–190 is attractive for investors seeking exposure to commercial vehicle growth.