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ASHOKLEY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | ASHOKLEY | Market Cap | 1,04,884 Cr. | Current Price | 179 ₹ | High / Low | 215 ₹ |
| Stock P/E | 28.5 | Book Value | 19.6 ₹ | Dividend Yield | 1.75 % | ROCE | 36.5 % |
| ROE | 31.4 % | Face Value | 1.00 ₹ | DMA 50 | 190 ₹ | DMA 200 | 160 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | 0.14 % | PAT Qtr | 1,026 Cr. | PAT Prev Qtr | 801 Cr. |
| RSI | 37.7 | MACD | -6.44 | Volume | 1,33,12,644 | Avg Vol 1Wk | 2,62,37,523 |
| Low price | 95.2 ₹ | High price | 215 ₹ | PEG Ratio | 0.07 | Debt to equity | 0.12 |
| 52w Index | 69.3 % | Qtr Profit Var | 34.7 % | EPS | 5.80 ₹ | Industry PE | 35.4 |
📊 Financials
- Revenue & Profitability: PAT rose from ₹801 Cr. to ₹1,026 Cr., showing strong quarterly growth (+34.7%). EPS at ₹5.80 is modest but consistent.
- Margins & Returns: ROCE at 36.5% and ROE at 31.4% are excellent, reflecting strong efficiency and profitability.
- Debt & Liquidity: Debt-to-equity ratio of 0.12 indicates very low leverage, ensuring financial resilience.
- Cash Flow: Dividend yield of 1.75% provides steady shareholder returns.
💹 Valuation
- P/E Ratio: 28.5 vs Industry PE of 35.4 — trading at a discount, suggesting undervaluation.
- P/B Ratio: Current price ₹179 vs Book Value ₹19.6 — ~9.1x book value, expensive relative to assets.
- PEG Ratio: 0.07 — indicates very attractive valuation relative to growth.
- Intrinsic Value: Current price is below industry average valuation, offering margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in commercial vehicles with strong brand presence and market leadership.
- High ROCE and ROE reflect operational excellence and competitive strength.
- Low debt enhances resilience and flexibility for expansion.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹170 – ₹180, near current support levels.
- Long-Term Holding: Strong fundamentals and industry tailwinds make it a good candidate for long-term holding. Accumulate on dips for sustained growth.
✅ Positive
- Excellent ROCE (36.5%) and ROE (31.4%) highlight superior efficiency.
- Debt-to-equity ratio of 0.12 ensures financial stability.
- Quarterly PAT growth (+34.7%) highlights strong earnings momentum.
- Dividend yield of 1.75% provides shareholder returns.
⚠️ Limitation
- P/B ratio (~9.1x) indicates expensive valuation relative to assets.
- EPS of ₹5.80 is modest compared to price levels.
- Technical indicators show weakness with RSI at 37.7 and MACD negative (-6.44).
📉 Company Negative News
- Stock trading below DMA 50 (₹190) indicates short-term weakness.
- MACD negative (-6.44) reflects bearish technical signals.
📈 Company Positive News
- Quarterly PAT growth highlights strong operational performance.
- FII holdings increased by 0.09% and DII holdings by 0.14%, showing institutional confidence.
- PEG ratio of 0.07 indicates attractive valuation relative to growth.
🏭 Industry
- Commercial vehicle sector benefits from infrastructure growth and rising logistics demand.
- Industry PE at 35.4 is higher than company’s valuation, highlighting potential undervaluation of ASHOKLEY.
🔎 Conclusion
ASHOKLEY demonstrates strong fundamentals with excellent efficiency, low debt, and robust earnings growth. While technical indicators show short-term weakness, the stock trades at a discount compared to industry peers. Best strategy: accumulate near ₹170–₹180 and hold for long-term gains, leveraging industry growth and the company’s strong market leadership.