Ashok Leyland shares have been witnessing a mixed trend over different timeframes, reflecting the volatility that has characterised the stock in recent months. Choice Broking has picked the stock as its monthly pick for September. While the auto stock has declined 5% over the past one month, it has delivered a strong 20% gain over the last three months.
The performance, however, remains uneven over the medium term, with the stock down 13% in the past six months. Looking at the longer-term picture, the commercial vehicle maker has continued to generate substantial returns for investors. Ashok Leyland has gained 23% over the past one year and has delivered multibagger returns of 178% over a five-year period.
Ashok Leyland was trading at ₹169.90 apiece. At this level, the stock is around 21% below its 52-week high of ₹215.35, while its 52-week low stands at ₹131.25. The 52-week low was touched in September 2025, while the supplied information states that the 52-week high was hit in February 2026.
Amid the recent volatility, the stock's technical setup has started showing signs of improvement. Choice Broking has highlighted renewed strength in the counter, pointing to a rebound from an important demand zone, improving momentum indicators and the stock's ability to hold above key moving averages.
Ashok Leyland technical outlookBuy ASHOKLEY @ 172.24 with a Target of 196 and a Stop Loss at 160Ashok Leyland's recent price action indicates that the stock may be attempting to regain its upward momentum after a period of weakness. According to Sumeet Bagadia of Choice Broking, the stock has staged a sharp rebound from its horizontal demand base near the ₹140 mark, confirming steady accumulation on dips.“Currently holding firmly above its key 20-week and 50-week Exponential Moving Averages, the price action reflects a strengthening short- to medium-term bias,” the expert stated.
Momentum indicators are also turning more favourable. The weekly Relative Strength Index (RSI) has reclaimed the 50 level and is moving higher. The RSI is currently around 53.87 and remains above its signal average, indicating that bullish momentum is expanding.
Bagadia believes the stock's ability to sustain itself above the key moving averages suggests that the recent pullback may have run its course. This, in turn, could position Ashok Leyland to resume its broader uptrend.“For positional trades, ₹160 should be considered as the key stop-loss level, aligning with the 50-week EMA support.
As long as the stock sustains above this threshold, ASHOKLEY holds the potential to advance toward the ₹196 target. Traders may consider buying around ₹172.24, while maintaining disciplined risk management,” Bagadia recommended. Ashok Leyland Q1 resultsAshok Leyland reported a 2.3% year-on-year increase in first-quarter profit on Friday, with robust commercial vehicle demand and price hikes helping the company offset the impact of higher input costs.
Profit for the quarter ended June 30 rose to ₹609 crore, compared with ₹594 crore in the corresponding quarter a year earlier. Revenue from operations also increased, rising 10.4% to ₹9,634 crore. The company nevertheless faced higher costs during the quarter.
Input costs increased 8.3%, which contributed to an 11.4% rise in overall expenses. Demand across the commercial vehicle industry also remained strong. Retail sales of commercial vehicles rose 13.6% year-on-year to 280,495 units during the June quarter, according to data from the Federation of Automobile Dealers Association.
Separately, Ashok Leyland has also expanded its investment focus. The company approved an investment worth ₹325 crore in British bus maker Optare Plc. Ashok Leyland is best known for its trucks and buses, but its business extends across several other segments.
The company also manufactures light commercial vehicles and defence vehicles, while offering power solutions and vehicle financing. The company ranks among India's leading players in commercial transportation and also has a presence in international markets.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.