Axis Securities picks Ashok Leyland as top weekly bet; sees up to 10% upside
The brokerage highlighted the company's strong position in the commercial vehicle (CV) segment and its strategic focus on innovation, exports and defence.
- Oct 13, 2025,
- Updated Oct 13, 2025 2:36 PM IST
Axis Securities has identified Ashok Leyland Ltd as its 'Pick of the Week', projecting an upside potential of up to 10 per cent from the current market price of Rs 138, with a target price of Rs 152 over the next 6–9 months.
The brokerage highlighted the company's strong position in the commercial vehicle (CV) segment and its strategic focus on innovation, exports and defence. It noted that Ashok Leyland is outperforming industry trends, supported by an expanding product portfolio and improving operating leverage.
The report pointed to multiple product launches, including high-horsepower tippers, LNG-powered trucks, upgraded buses and bi-fuel LCVs targeting urban markets. Electric trucks on the BOSS and AVTR platforms are also gaining traction both domestically and abroad, enhancing the company's technology-driven growth profile.
In the defence segment, despite a decline in Q1 FY26 revenue to Rs 120 crore from Rs 400 crore a year ago, Axis Securities expects recovery, backed by a Rs 1,000 crore order book and Rs 2,000 crore worth of tenders won. The power solutions division also grew 28.5 per cent year-on-year (YoY), helping diversify revenue streams.
The brokerage further noted that capacity expansion in Andhra Pradesh, Lucknow, Alwar and Trichy will increase bus production from 950 to 1,650 units a month, while dealership expansion is on track to cross 2,000 touchpoints by FY26-end.
Axis Securities remains positive on Ashok Leyland's long-term growth, projecting a 5 per cent CAGR in volumes and 6–8 per cent CAGR in revenue, EBITDA and PAT through FY28. The stock trades at a P/E of 12x FY26E earnings, with a strong return on equity (RoE) of 25.6 per cent.
Axis Securities has identified Ashok Leyland Ltd as its 'Pick of the Week', projecting an upside potential of up to 10 per cent from the current market price of Rs 138, with a target price of Rs 152 over the next 6–9 months.
The brokerage highlighted the company's strong position in the commercial vehicle (CV) segment and its strategic focus on innovation, exports and defence. It noted that Ashok Leyland is outperforming industry trends, supported by an expanding product portfolio and improving operating leverage.
The report pointed to multiple product launches, including high-horsepower tippers, LNG-powered trucks, upgraded buses and bi-fuel LCVs targeting urban markets. Electric trucks on the BOSS and AVTR platforms are also gaining traction both domestically and abroad, enhancing the company's technology-driven growth profile.
In the defence segment, despite a decline in Q1 FY26 revenue to Rs 120 crore from Rs 400 crore a year ago, Axis Securities expects recovery, backed by a Rs 1,000 crore order book and Rs 2,000 crore worth of tenders won. The power solutions division also grew 28.5 per cent year-on-year (YoY), helping diversify revenue streams.
The brokerage further noted that capacity expansion in Andhra Pradesh, Lucknow, Alwar and Trichy will increase bus production from 950 to 1,650 units a month, while dealership expansion is on track to cross 2,000 touchpoints by FY26-end.
Axis Securities remains positive on Ashok Leyland's long-term growth, projecting a 5 per cent CAGR in volumes and 6–8 per cent CAGR in revenue, EBITDA and PAT through FY28. The stock trades at a P/E of 12x FY26E earnings, with a strong return on equity (RoE) of 25.6 per cent.