Ashok Leyland Shares Complete Fundamental Analysis

Description
Ashok Leyland was founded in 1948 and it is the second-largest commercial vehicle manufacturer in India, fourth largest manufacturer of buses in the world and 14th largest manufacturer of trucks globally. It is promoted by the Hinduja Group. The company has seen good growth in revenue over the years (18% CAGR) but has shown negative operating income, high-interest expense and volatile net income margin.

The company has a past record of 67 years of continuous profitability.

Ashok Leyland has an established after-sales service network and a good footing in the truck resale business. It has many other competitors like TATA Motors, Eicher and M&M already taking away the market share.

The company operates in an asset-heavy industry which is also cyclic. Therefore it will have lower profitability, high leverage, less efficiency and high Inventory.

The Model covers all the major fundamental aspects of Ashok Leyland Ltd over the ten year period from 2010-2020. It includes:
1. Growth Ratios
2. Profitability Ratios
3. Cash Flow Ratios
4. Liquidity and Solvency Ratios
5. Efficiency Ratios
6. Valuation Ratios
7. ROE (Du Pont Analysis)
8. Common Size analysis
9. Enterprise Valuation
10. Financial Strength Analysis

Further Qualitative analysis is also done considering these factors and ratings have been assigned.