⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ASHOKLEY - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | ASHOKLEY | Market Cap | 1,14,217 Cr. | Current Price | 194 ₹ | High / Low | 199 ₹ |
| Stock P/E | 33.5 | Book Value | 19.6 ₹ | Dividend Yield | 1.63 % | ROCE | 36.5 % |
| ROE | 31.4 % | Face Value | 1.00 ₹ | DMA 50 | 175 ₹ | DMA 200 | 146 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | 0.14 % | PAT Qtr | 801 Cr. | PAT Prev Qtr | 594 Cr. |
| RSI | 56.3 | MACD | 5.38 | Volume | 73,02,386 | Avg Vol 1Wk | 1,56,41,959 |
| Low price | 95.2 ₹ | High price | 199 ₹ | PEG Ratio | 0.08 | Debt to equity | 0.12 |
| 52w Index | 95.4 % | Qtr Profit Var | 16.2 % | EPS | 5.74 ₹ | Industry PE | 37.0 |
📈 Technical Analysis
- Chart Patterns: Price (194 ₹) is near its 52-week high (199 ₹), showing strong bullish momentum.
- Moving Averages: Price is well above both 50 DMA (175 ₹) and 200 DMA (146 ₹), confirming an uptrend.
- RSI: At 56.3, neutral-to-bullish momentum, not yet overbought.
- MACD: Positive (5.38), bullish crossover supports upward momentum.
- Bollinger Bands: Price near upper band, suggesting strength but limited upside in short term.
- Volume Trends: Current volume (73L) is below 1-week average (156L), showing reduced participation despite price strength.
🎯 Momentum & Trade Zones
- Support Levels: 175 ₹ (50 DMA), 146 ₹ (200 DMA), 95.2 ₹ (recent low).
- Resistance Levels: 199 ₹ (recent high), 205–210 ₹ (psychological barrier).
- Entry Zone: 180–185 ₹ (accumulation near support).
- Exit Zone: 198–205 ₹ (profit booking near resistance).
- Trend: Strong uptrend with consolidation near highs; reversal risk if price fails to break above 199–205 ₹.
✅ Positive
- ROCE (36.5%) and ROE (31.4%) reflect excellent efficiency.
- Debt-to-equity ratio at 0.12, very low leverage.
- Dividend yield of 1.63% provides shareholder returns.
- Quarterly PAT improved (801 Cr. vs 594 Cr.), showing strong earnings growth.
- PEG ratio (0.08) indicates attractive valuation relative to growth.
- 52-week index return of 95.4% highlights strong long-term performance.
⚠️ Limitation
- Stock P/E (33.5) is slightly below industry average (37.0) but still high relative to EPS (5.74 ₹).
- Book value (19.6 ₹) is far below current price, suggesting premium valuation.
- Volume participation is weak compared to average, reducing conviction in breakout moves.
📉 Company Negative News
- FII holdings increased only marginally (+0.09%), showing limited foreign investor confidence.
- Volume below average, indicating reduced short-term momentum.
📊 Company Positive News
- DII holdings increased (+0.14%), reflecting domestic support.
- Quarterly PAT growth of 16.2% highlights earnings momentum.
- Strong ROCE and ROE make the company highly efficient.
🏭 Industry
- Industry P/E at 37.0, slightly higher than company’s 33.5, suggesting Ashok Leyland is valued reasonably compared to peers.
- Automobile and commercial vehicle sector demand remains strong, driven by infrastructure and logistics growth.
📝 Conclusion
- ASHOKLEY is in a strong uptrend, consolidating near its 52-week high.
- Optimal entry near 180–185 ₹ with exit around 198–205 ₹.
- Strong fundamentals, efficiency ratios, and PAT growth make it attractive, but premium valuation and weak volume trends limit upside.
- Medium-term investors should wait for breakout above 199–205 ₹ to confirm continuation of bullish trend.