Big Gift For Shareholders: Ashok Leyland Shares Set To Double – 1:1 Bonus Issue Announced, Should You Buy?

In addition to announcing the best-ever quarterly and annual revenues, EBITDA, and PAT for Q4 and FY2025 on Friday, Ashok Leyland Limited, the Hinduja Group's Indian flagship, also announced that the Board had approved bonus shares in a 1:1 ratio, with the record date to be announced shortly.

Ashok Leyland Bonus Shares

"The Board had approved Issue of Bonus equity shares in the ratio 1:1 i.e. 1 (One) equity shares of Rs 1/- each for every 1 (One) full paid-up equity share of ₹ 1/- each held by the Shareholders of the Company as on the Record Date, subject to the approval of Shareholders through a Postal Ballot. The Company will inform the "Record Date" for determining the entitlement of the Shareholders to receive Bonus Shares in due course," said Ashok Leyland in a stock exchange filing.

Ashok Leyland Dividend

"The Board of Directors of the Company have declared two Interim Dividends for the FY 2024-25 (i.e. Rs 2/- per share in November 2024 and Rs 4.25 per share in May 2025) totaling to Rs 6.25 per share on a face value of Rs 1/- each," Ashok Leyland informed stock exchanges on Friday.

The aforementioned second interim dividend of Rs 4.25 would be paid on or before June 14, 2025, with Thursday, May 22, 2025, serving as the record date to determine the members who are qualified to receive the dividend.

Ashok Leyland Q4 Results

In comparison to the net profit of Rs 900 crore reported in the same quarter of the previous fiscal year, the company's consolidated net profit increased by 38.4% year-on-year (YoY) to Rs 1,246 crore in Q4FY25. The company's highest-ever quarterly revenue was Rs 11,906 crore, which was generated during the reporting period.The business recorded an EBITDA of Rs 1,791 crore, which represents a 15% YoY growth over Q4FY24's Rs 1,592 crore.

Ashok Leyland ended the financial year FY25 with net cash of Rs. 4,242 Cr, as against net debt of Rs. 89 Cr at the end of the previous year.

Mr. Shenu Agarwal, Managing Director & CEO, Ashok Leyland Limited said "FY25 has been another landmark year for us. We've set new records in revenue, EBITDA, and profitability. Our margin expansion and robust cash generation reflect the strength of our operations. It also gives us immense satisfaction to achieve our medium-term goal of mid-teen EBITDA in Q4. The company is in a very strong cash position, ending the year with a cash surplus of Rs. 4,242 Cr. This gives us more fuel to further augment our strengths in products and technology, and to offer best-in-class customer experience. We are continuing on our premiumization journey with high focus on delivering exceptional value to our customers. We are now more confident than ever in our ability to gain market share and further improve our price realization."

Mr. Dheeraj Hinduja, Chairman, Ashok Leyland Limited said, "Achieving these record-breaking numbers is a matter of immense pride for us. It reflects the resilience of our business and the trust our customers place in us. Given Company's strong financial performance in the last three years, the Board of Directors has approved a 1:1 bonus share issue. This is on the back of two interim dividends announced for FY25 amounting to 625%, or Rs. 6.25 per share. With our unwavering focus on innovation and customer satisfaction, and thrust in international operations, we are well-positioned for sustained and profitable growth."

Ashok Leyland Share Price Target

"Ashok Leyland remains bullish and is approaching resistance near ₹250. Support lies at ₹235. Sustaining above ₹245 may trigger a rally toward ₹260. The structure is strong, with higher highs and good volumes. Buy-on-dips strategy near ₹238-₹240 looks favourable with a stop-loss at ₹228," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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