Ashok Leyland share price hits fresh record high as rally extends to 4th day, gains 40% in 6 months

Commercial vehicle maker Ashok Leyland saw its shares rise for the fourth straight session on Friday, September 19, gaining another 3% to hit a new lifetime high of ₹142.65 apiece, bringing the stock's September gain to 11% so far.

The company’s shares, which were already flying high on Dalal Street, accelerated further after the company announced earlier this month that it will invest ₹5,000 crore over the next ten years in the development of next-generation batteries for both automotive and non-automotive applications, including energy storage systems.

This aligns with the company's ambition to become a leading player in creating an electrification ecosystem in the country. To establish a localised battery supply chain in India, the company partnered with CALB Group, one of the foremost battery technology companies in China.

CALB is one of the top five EV battery manufacturers in China, competing with CATL, BYD, Gotion High-Tech, and EVE Energy. Its operational capacity exceeds 90 GWh. Key automobile customers include XPeng, Changan, Geely, and Guangzhou.

The company plans to invest ₹3–6 billion over the next 2–3 years to set up a lithium battery pack manufacturing facility and a Center of Excellence, which domestic brokerage firm Nuvama Institutional Equities believes will drive innovation in battery materials, recycling, battery management systems, and advanced manufacturing processes.

Pack production is likely to start by H1CY27, initially for captive use, with future expansion to serve external demand from PV, 2W, 3W, and non-auto segments. The focus will be on LFP cathode chemistry.

In addition, optimism has grown that the GST rate cut on automobiles will benefit the commercial vehicles segment, with analysts expecting the reduction to unleash replacement demand.

According to analysts, the GST rate cut is expected to drive consumption in the economy, thereby increasing freight traffic and ultimately boosting demand for commercial vehicles.

Ashok Leyland share price soars 40% in 6 months

Over the last six months, the shares have risen from ₹101 apiece to the current trading price of ₹141.20, translating into a robust gain of 41%. During this period, they have closed five months in the green, with April recording the biggest monthly gain of 10.33%.

Meanwhile, brokerages have also retained their bullish stance on the stock following the company’s June quarter performance, as it reported its highest-ever Q1 revenue of ₹8,725 crore, up 1.5% from ₹8,598 crore in Q1FY25, along with a record Q1 in terms of CV volumes at 44,238 units.

The company posted a 13.4% year-on-year rise in consolidated net profit to ₹594 crore, compared to ₹525 crore in the same quarter last year, beating analysts’ estimates.

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