Ashok Leyland Limited (ASHOKLEY.NS) stock analysis

In our weekly check, Ashok Leyland Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5.

About Ashok Leyland Limited

Ashok Leyland Limited is an Industrials company (Agricultural - Machinery) based in India, listed on NSE as ASHOKLEY.NS.

What our checks show for ASHOKLEY.NS

Red flags

• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Free cash flow is negative (-13.6% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 79% from a peak. Would you have held through that?
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating profit covers interest only 3.6 times: a weak year could make the payments hard.
• Analysts expect only about 0.2% a year of growth in revenue.
• The net margin is only 6%: little room if costs rise.
• The price swings a lot: 36.6% annual volatility. Expect large ups and downs.
• Recovering from its deepest fall took about 2.3 years.

Strengths

• Debt is low: 0x equity.
• The net margin rose by 7.4 points over 5 years, to 6%.
• The gross margin is 39.8% and has risen by 7.6 points: pricing power is holding.
• Analysts expect earnings per share to grow about 17% a year over the next years.
• Analysts expect the net margin to improve by 3.1 points from today's 6%.
• Earnings per share grew 41% a year over the last 3 years.

Next earnings report: 2026-11-06

Similar companies

CAT · 6326.T · DE

Questions

What grade does Ashok Leyland Limited (ASHOKLEY.NS) have?

In our weekly check, Ashok Leyland Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ASHOKLEY.NS stock?

This week's biggest flags for Ashok Leyland Limited: Profits not backed by cash, Weak free cash flow, Deep past fall. In total 10 of 25 checks show a warning or a red flag.

What does Ashok Leyland Limited do?

Ashok Leyland Limited is an Industrials company (Agricultural - Machinery) based in India, listed on NSE as ASHOKLEY.NS.

When does Ashok Leyland Limited report earnings next?

The next earnings report is expected on 2026-11-06. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis