Since the initiation of coverage on Ashok Leyland Ltd on August 21, 2024, with a BUY rating at a then CMP of ₹125.3 (pre–1:2 stock split; adjusted entry price ₹125.6), the stock has delivered a strong rerating, scaling an all-time high of ₹198 on February 1, 2026 and decisively surpassing our earlier target price of ₹182. At the current level, the stock trades at a P/E multiple of 31.7x, broadly in line with the 30x multiple prevailing at the time of our recommendation, despite a materially stronger earnings base, improved balance sheet discipline, and enhanced cash flow visibility. The sustained valuation reflects the market’s confidence in Ashok Leyland’s structurally improved profitability, prudent capital allocation, and resilience across CV cycles. Given the meaningful upside already realized and the stock trading marginally
above our assessed fair value band, we recommend booking 50% of your holding to lock in gains, while continuing to HOLD the remaining position, as we believe the current valuation remains supportable over the medium term, anchored by steady earnings compounding and disciplined execution.
Report Attached.