Ashok Leyland SURGES! Q2 Profits Soar, Analyst Morgan Stanley Raises Target to ₹160!

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Updated on 13 Nov 2025, 10:09 am

Ashok Leyland experienced a notable surge in its share price, trading up 5.3% at Rs 150 by 1:45 PM IST on Thursday, November 13, 2025. This rally followed the announcement of its strong second-quarter results for the period ending September 30, 2025. The commercial vehicle maker posted a 7% rise in consolidated net profit to Rs 820 crore, compared to Rs 767 crore in the same quarter last fiscal, driven by healthy sales across its businesses. Revenue from operations increased to Rs 12,577 crore from Rs 11,142 crore year-on-year. The company also achieved an all-time high standalone net profit of Rs 771 crore for the quarter.

Following these results, American investment bank Morgan Stanley has given a positive outlook. They reiterated their 'Overweight' rating on Ashok Leyland and increased the target price from Rs 152 to Rs 160. Morgan Stanley finds the current valuations attractive, noting the stock trades at 11.5 times Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortisation (EV/EBITDA), which is below its 10-year median of 12.2x. They anticipate structural margin improvements and have revised earnings per share (EPS) estimates upwards by 3–4% for FY26–28, factoring in stronger export performance and increased margins. Growth is projected to accelerate in the latter half of the fiscal year, boosted by new product introductions.

Impact This news is highly positive for Ashok Leyland investors. The strong earnings, coupled with an analyst upgrade and increased price target, are expected to support the stock's upward momentum. The sector might also see some positive sentiment. Rating: 9/10

Terms: Consolidated Net Profit: The total profit of a parent company and its subsidiaries after all expenses and taxes are deducted. Revenue from operations: The total income generated from the company's primary business activities. Standalone Net Profit: The profit generated by the company itself, excluding its subsidiaries. Overweight rating: An investment rating suggesting that a particular stock is expected to perform better than the average stock in its sector or the broader market. EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortisation): A valuation metric used to compare companies, indicating how much an investor is paying for each unit of a company's operating profit. EPS (Earnings Per Share): A measure of a company's net profit allocated to each outstanding share of common stock.