CMP ₹238 | EPS ₹11.25 | Dividend ₹6.25 | Bonus 1:1 | Is this truck riding to ₹500?
📌 At a Glance:
Ashok Leyland just dropped its Q4 FY25 results, and here’s why investors are honking their horns:
- 🤑 Revenue: ₹14,817 Cr (up big from Q3)
- 🧾 Net Profit: ₹1,245 Cr
- 💸 Dividend: ₹6.25 for FY25 (₹4.25 just announced!)
- 🎁 BONUS: 1:1 Bonus Shares
- 📈 EPS (FY25): ₹11.25 — the truck is earning harder than most humans.
Oh, and the stock is still just ₹238. Are we seriously pricing India’s second-largest CV player cheaper than a second-hand Activa? 😤
🧮 Key Financials (Standalone)
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| Q4 FY25 | 14,817 | 1,245.87 | 4.24 |
| Q3 FY25 | 9,503 | 761.74 | 2.59 |
| Q2 FY25 | 8,866 | 770.10 | 2.62 |
| Q1 FY25 | 8,621 | 525.58 | 1.79 |
| FY25 Total | 39,003 | 3,303.29 | 11.25 |
✅ YoY Net Profit up 26%
✅ FY25 EPS ₹11.25
✅ P/E just 21x — and about to halve post-bonus
🧧 Bonus Issue: 1:1 — Double the Shares, Half the Valuation
Ashok Leyland has approved a 1:1 bonus share, which means:
- Every shareholder gets 1 extra share for every 1 they hold.
- Post-bonus, the total share count will double to 587.3 Cr shares.
- But don’t panic — your net worth doesn’t halve. Just the CMP will adjust (theoretically to ₹119).
🧠 “This is less about generosity and more about liquidity — but hey, we’ll take it.”
💸 Dividends: ₹6.25 Per Share in FY25
| Date | Amount | Notes |
|---|---|---|
| Nov 2024 | ₹2.00 | First interim |
| May 2025 | ₹4.25 | Second interim |
| Total | ₹6.25 | On face value of ₹1 |
Dividend yield = ~2.6% — far better than SBI FD, and comes with stock upside too!
🏭 What’s Driving This Profit Boom?
- 🛻 Commercial Vehicles Demand Surge: Especially in LCVs and intra-city logistics.
- 🏗️ Government Infra Push = More trucks on roads.
- 🌍 Export Growth: AL is quietly building a global footprint.
- 📉 Costs Controlled: Input costs & interest expenses fell YoY.
💼 Management Commentary (Translated to EduSpeak):
🎙️ “We’re bullish on the future, committed to value creation, and excited about the next phase of growth.”
📖 Translation: “Bro, we’re making money, finally! The economy is building roads, and we’re selling the wheels.”
🏦 Balance Sheet Snapshot
| Metric | Mar 2025 | Mar 2024 |
|---|---|---|
| Net Worth | ₹11,519 Cr | ₹8,810 Cr |
| Debt | ₹1,482 Cr | ₹2,300 Cr |
| Debt-Equity | 0.13 | 0.26 |
| Interest Coverage | 34.95 | 24.43 |
| Cash | ₹2,659 Cr | ₹1,941 Cr |
💪 Debt cut almost in half. Balance sheet looking leaner than a protein-fueled gym bro.
🚨 Risks & Red Flags
- 🏦 Financial Subsidiary (HLFL) Merger Pending → RBI approvals still in limbo.
- 💸 Bonus = Short-term Dilution — EPS will halve, so expect confusion among uninformed retail.
- 🛢️ CV Cyclicality — If economy slows, sales drop like a pothole in monsoon.
🧠 EduInvesting Verdict: “Bonus bhi, Dividend bhi… Yeh Truck Nahi, Tesla Hai Re!”
Ashok Leyland has:
- ✅ Delivered strong growth
- ✅ Declared juicy dividend
- ✅ Announced 1:1 bonus
- ✅ Improved margins
- ✅ Clean audit (PwC, unmodified report)
Yet CMP is ₹238. Even if FY26 EPS is ₹13 post-bonus (i.e. ₹6.50), a 20x multiple = ₹130 post-bonus CMP, i.e., ₹260 pre-bonus FV — undervalued by ~9% even today.
🔥 EduFair Value (Post Bonus): ₹130
🔥 EduFair Value (Pre Bonus): ₹260
If they repeat these numbers next year — ₹300 is very possible.
Author: Prashant Marathe
Date: May 23, 2025
Tags: Ashok Leyland, Q4 FY25 Results, Bonus Shares, Dividend Stocks, Commercial Vehicles, Indian Auto Sector, EduInvesting, CV Boom, Funny Finance, Truck Stocks
