Shares of Ashok Leyland closed 2.3 percent higher at ₹242.80 on Monday after the commercial‑vehicle giant said its board will meet on Friday, 23 May to consider issuing bonus shares alongside the release of fourth‑quarter and full‑year FY25 results.
In an exchange filing, directors stated that they will consider stand-alone and consolidated audited FY25 financial statements and, “subject to required approvals,” could sanction a bonus-share proposal—the first by a company after 2010.
If so authorized, the bonus issue would reward shareholders by converting part of reserves into capital to increase outstanding shares while maintaining total market value constant. Later, record date and ratio (e.g., 1:1 or 1:2) would be declared.
What to watch
- Earnings – Analysts expect solid growth in revenue driven by replacement demand for medium and heavy commercial vehicles (MHCVs) and continued strength in the bus segment.
- Margins – Lower commodity prices and operating leverage could support profitability.
- Dividend – Investors will listen for any ordinary dividend recommendation in addition to the prospective bonus.
- FY26 outlook – Management commentary on domestic infrastructure spending and exports to Africa and the Middle East will be key.
Stock performance
Ashok Leyland has risen roughly 38 percent over the past 12 months, outperforming the Nifty Auto index, as fleet operators accelerated purchases and scrappage incentives kicked in. The possibility of a bonus issue adds another catalyst ahead of the results.
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Source: Moneycontrol.
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