Is Ashok Leyland going to be another TATA Motors?

I have Ashok Leyland shares with average price of 145. Experts are suggesting to sell with a target of 120. Should I sell it or not as there are rumours that it can be another TATA Motors. As far as I know it’s a financially strong company and increasing profit every quarter. I don’t know what’s happening. What do you think about it?

The stocks are in entirely different leagues.

Tata Motors has made some strategic blunders that are costing them dearly. The acquisition of Jaguar and Land Rover didn’t pan out and it’s hard to see a reversal given that they are not growing in the critical markets like China.

Moreover, they are trying to compete with the European auto majors such as BMW, Mercedez etc. (good luck!). On the valuation front it may be comforting but until the management delivers on the numbers, it is hard to see any turnaround in the stock.

Ashok Leyland is way ahead of Tata Motor when it comes to strategy and execution. Till the CV segment is alive and well in India, Leyland would continue to do well. The stock is clearly overpriced and like most other midcaps it is shedding some weight, that’s all.

This is the time when investor’s skills will be tested. Got to take the blue or red pill.

-Neha (

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First of all who are these experts, already it is 120 what kind of post facto experts are these

Secondly if u hold in cash, why r u so worried? Ashok Leyland is a very good stock.

If u have a huge quantity which u cannot handle then I would ask another question - Who told u to buy huge quantity in 2018?

Also keep a long term view, but do keep a stop loss in mind, lets say 110. If it goes until then, then it may very well go into double digits.


Thanks for replying. I’m just a beginner here. I don’t have a big investment but still I have highest percentage in Ashok Leyland. That made me worried. I guess I should take blue pill. :expressionless:

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Thanks. Actually it’s not that huge quantity but almost 25% of my portfolio. I m a beginner. I wasn’t worried til 130 but below this level is worry some I guess.

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If the amount is manageable, then Ashok Leyland is not a kind of stock to throw, so u can wait for long term

But if amount invested is higher (as per persons capacity) its always safe to exit partial or full at 30% downfall. Frankly speaking, in this kind of years, apart from top 10-20 stocks, none of other stocks has a bottom.

Funnily I considered Ashok Leyland to be in that top 10-20 so i am also surprised with its fall, lets see from tomorrow it being new FNO series (July), if it doesnt change its trend, then I would be alarmed.

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Ashok Leyland being a good company not comparable to "Dabba " vehicle maker Tata Motors, . Present market condition , rising crude price , rupee depreciation are affecting Auto Industry .
Holding a stock which is down by 14 % is not a good idea ( not recommending but observations ) , Chart indicates Ashok Leyland is in an oversold territory , if i were you , i would like to exit at rallies and reenter once corrections are over .

Yes, I was also thinking of month’s end. I was just hoping some improvement in the stock in july. Considering the dividend date, I guess I should wait till 110 at least as you said 110 can be the stop loss. If it doesn’t stop falling then I will exit. BTW I hope if it recovers, it will cross 160 by the end of this year.

Why July first week is more important is

  1. The fall can be FNO game. So new FNo series may see new trend

  2. Sales numbers coming on 2nd July will make things more clear

So if it still reaches 110, then definitely its dangerous to just keep holding it

Actually I thought dividend date is about to come, so if I exit I will miss the dividend. Moreover I was not expecting this much correction. I thought 130-132 will be the lowest level for this stock now. But it’s not stopping so far. BTW as you said, you would have exited the stock if it were 14% down for you, I am curious to know what the people holding millions of shares do in this situation. I guess they can’t sell this huge amount until they get a “foolish buyer”. At least one of them will be a fool either buyer or seller.

Ohhk. So if 2nd july turns to be negative for the stock then it will be better to exit. Thanks :wink:

Well , normally dividends are factored in by the market participants , in a particular stocks . Moreover even if Ashok Leyland declares dividend rate of 100 % per share , for 100 shares it will be Rs 100 only !! if i bought 100 shares @ 145 for Rs 100 , at current market price i will be losing Rs 2100. So wise sellers are probably selling Ashok Leyland shares.
Chart indicates support level of 112 and pull back level of 130-132 , even if i sell at 130 level still it is a 10 % down , its a huge dent on Investment account , unless if i am a long term investors , its not a good idea to hold a stock which is down by 10 to 15 %

Manoj don’t sell AL in loss. Give it a year but watch daily. Either sell off in profit or wait . you can also consider buying at 120 levels and sell in short profit.

I meant re enter at 120 but exit at say 125 and make short term profits

Yes, I think in long term AL will definitely go high.

I know I made a mistake by buying around 145. I could have averaged around 130 that could be a much better level. But as it had hit above 165 I thought I won’t come down to 130 levels but I was wrong. BTW few companies like Ashok Leyland, Maruti Suzuki, Dabur, Castrol are never going to be negative in long term so I guess I will hold them forever. I know sometimes even blue chips also fall to an unexpected levels but that’s rare I guess. After all there is always risk, but we try to just minimize it.

Yes as I said, I also feel Ashok Leyland is one of those top 20 safe stocks.

But nothing is impossible in stock market.

So thats why one should always have a stop loss, to either partially or fully exit

In non FNO midcaps, definitely full exit, in stocks like AL, maybe partial exit.

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Hmm. But I will wait till 110 level then will exit.

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Ashok leyland sales numbers out and are they good ?

Not sure man, i am not much of an investor, i just take positional trades

Maybe someone else can clarify

I just go by price pattern, and ASHOKLEY still looking weak today