Rs. 4.25 Dividend Incoming: Ashok Leyland To Consider Bonus Shares After A 14-Year Gap; Buy Now?

Ashok Leyland's stock concluded Tuesday's trading session on the BSE 0.23% higher at Rs 241.95 a share, with a market value of Rs 71,049.28 Cr. Following the company's announcement that the Board of Directors could look into the proposal for bonus share issuance at its meeting on May 23, 2025, market watchers' attention has been drawn to the stock. If this plan gets approval, it will be the company's second move in 14 years, since Ashok Leyland previously announced 1:1 bonus shares in 2011.

Ashok Leyland has declared a second interim dividend of Rs 4.25 per share, with a record date of May 22, 2025, and payout expected by June 14. The board is also scheduled to meet on May 23 to consider a potential bonus issue and approve Q4 FY25 results. These announcements could boost investor sentiment and act as near-term catalysts for the stock.

Ashok Leyland Bonus Shares Proposal

"Pursuant to Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that, at the meeting dated 23rd May 2025, the Board of Directors may consider the proposal for issue of Bonus shares, subject to requisite approvals as required," said Ashok Leyland in a stock exchange filing on Monday.

Pre-Results Blackout: Ashok Leyland Closes Trading Window for Insiders

"As notified by the Company vide letter dated March 26, 2025, pursuant to the Company's code to regulate, monitor and report trading by Designated Persons, the Trading Window for dealing in the securities of the Company has been closed for all the Designated Persons and their immediate relatives from April 1, 2025 and till the expiry of 48 hours from the date of audited financial results for the financial year ended March 31, 2025 are made public," Ashok Leyland informed stock exchanges.

Ashok Leyland Q4 Results Date

"A Board meeting is proposed to be convened on 23rd May 2025 for considering the standalone and consolidated audited financial results for the financial year ended March 31,2025, amongst others," Ashok Leyland confirmed in a regulatory filing.

Ashok Leyland Upcoming Dividend

On May 16, 2025, the Board of Directors announced a second interim dividend of Rs. 4.25 per equity share of Re. 1 each for the fiscal year that ended on March 31, 2025. On or before June 14, 2025, the aforementioned second interim dividend would be paid. The record date for the purpose of determining the members eligible to receive the above-said dividend is Thursday, May 22, 2025.

At a face value of Re. 1, the company has so far declared a total interim dividend for FY25 of 625%, or Rs. 6.25 per share.

Ashok Leyland Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "Ashok Leyland is currently trading at ₹242, having recently made an intraday high of ₹249.54. Despite the strong upward move, the stock has not yet managed a decisive close above the psychological resistance level of ₹250. The failure to sustain above this level can be attributed to overall market weakness and profit booking from higher levels."

"The stock continues to maintain its bullish structure, forming a series of higher highs and higher lows on the daily chart-an indication of strength and sustained uptrend. A confirmed close above ₹250 will likely act as a breakout trigger, opening up upside targets towards ₹260 in the near term. Momentum indicators like RSI are currently in the neutral-to-bullish zone, supporting the possibility of further gains," the analyst added.

"On the downside, any dip towards the ₹227-₹237 zone should be seen as a buying opportunity, as it coincides with a short-term support area and aligns with the trendline support. Traders and investors should keep a stop-loss near ₹220 to manage risk. Overall, the technical setup remains positive, and any consolidation above key levels will add strength to the ongoing uptrend," Mandar Bhojane further recommended.

"Ashok Leyland is showing strong bullish momentum, trading near its recent highs. The stock has broken above key resistance levels and is now approaching the ₹245-₹250 zone, which could act as the next hurdle. Immediate support lies at ₹235, followed by ₹228. The uptrend remains intact as long as it holds above ₹235. Short-term traders can consider buying on dips near ₹238-₹240 with a stop-loss at ₹228. A breakout above ₹250 on strong volume could open doors to ₹265 levels in the coming weeks," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.