Ashok Leyland Shares Slip After Goldman Downgrade But SEBI Analyst Sees Long-Term EV Opportunity

Ashok Leyland shares fell 1.8% on Wednesday after Goldman Sachs downgraded the stock to 'neutral', keeping its target price unchanged at ₹140. 

The global brokerage firm cited a likely shift in India's economy away from capital expenditure and toward consumption, which could favor passenger cars over commercial vehicles.

 “We expect car volume growth to exceed CV volume growth over the next 12 months,” Goldman said, while also cutting FY26 to FY28 earnings per share estimates by 4% to 7%. 

The note also warned that demand could taper in the medium term and flagged the upcoming North West Dedicated Freight Corridor, due in early 2026, as a risk to long-haul truck demand.

Fundamental View

SEBI-registered analyst Finkhoz underlined that Ashok Leyland remains at an all-time high, supported by strong financial performance. 

For March, the company achieved an all-time high in consolidated sales, reaching ₹14,696 crore, and a net profit of ₹1,246 crore. Operating margins improved to 20%, while earnings per share nearly doubled on a year-over-year basis, driven by steady quarterly growth.

Technical View

On the technical side, Finkhoz pointed out that the stock has broken above major resistance, with the current price of ₹144.04 trading above all key moving averages. 

Trading volumes are elevated, showing strong participation from both institutional and retail investors. 

The relative strength index (RSI) is above 72, which is a sign of strong momentum but could also show the potential for a bit of cooling in the short term before the next leg higher.

Betting On Electric Vehicle Push 

Finkhoz highlighted Ashok Leyland's planned investment of ₹300–500 crore into battery technology as a careful move into the electric vehicle market. 

Global players such as Bank of America remain broadly positive, with 34 out of 44 analysts still rating the stock a 'Buy.' Rising truck rentals and improved fleet utilization are also providing near-term support to demand.

Analyst View

According to Finkhoz, the long-term outlook remains strong, especially as the company builds its EV strategy. 

However, they said, given the sharp rally, some profit-taking could occur. He suggested new investors build positions over time or wait for pullbacks instead of chasing the stock at record highs.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'neutral' amid 'normal' message volume.

Ashok Leyland's stock has risen 26.9% so far in 2025.

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