Ashok Leyland, a leading commercial vehicle manufacturer, has set today, July 16, 2025, as the record date for its 1:1 bonus share issue. This means investors who hold shares of Ashok Leyland in their Demat account as of today are eligible to receive one additional share for each share they already own.
The company's allotment committee has fixed Wednesday, July 16, 2025, as the record date to determine shareholders eligible for the bonus share allotment. The deemed date of allotment for these bonus shares is Thursday, July 17, 2025, and they are expected to be available for trading on Friday, July 18, 2025.
This bonus issue is significant as it is Ashok Leyland's first bonus issue since 2011, when it also offered a 1:1 bonus. The company announced the bonus issue in May 2025, alongside its March quarter results and dividend declaration. In addition to the bonus shares, the board also approved a dividend of ₹4.25 per share, resulting in a total payout of ₹1,248 crore.
In anticipation of the record date, Ashok Leyland's shares experienced some fluctuations. On Tuesday, July 15, 2025, the shares opened at ₹254 apiece, compared to the previous day's close of ₹252.95. However, the stock touched an intraday low of ₹249 during the trading session. At the close of trading on July 15, Ashok Leyland share price was Rs 249.6 on NSE and Rs 249.6 on BSE.
For the fourth quarter, Ashok Leyland reported a 38.4% increase in net profit, which rose to ₹1,246 crore from ₹900 crore in the same period the previous year. This growth was aided by a tax credit of ₹173 crore, which was absent in the year-ago quarter. The company's quarterly revenue also grew by 5.7% year-on-year to ₹11,906.7 crore, while EBITDA reached ₹1,791 crore, reflecting a 12.5% increase over the previous year.
From a valuation perspective, Ashok Leyland has a market capitalization of ₹73,677 crore. The stock is trading at 6.02 times its book value, and the company has a return on equity (ROE) of 29.2%. The stock has demonstrated strong performance, rising 14% so far this year and 11% in the last 12 months. Over the last 5 years, the company has delivered good profit growth of 54.6% CAGR and has been maintaining a healthy dividend payout of 59.7%.
Several analysts have given "buy" ratings for Ashok Leyland shares, with target prices ranging from ₹280 to ₹295, anticipating continued growth in the commercial vehicle sector.
Ashok Leyland, the flagship company of the Hinduja Group, holds a significant position in the commercial vehicle market, and is the 2nd largest manufacturer of commercial vehicles in India. As of FY24, it held a market share of 31% in the M&HCV bus and truck segment and 20% in the LCV segment.
