PRESTIGE INSTITUTE OF MANAGEMENTPRESENTATION ON

FUNDAMENTAL ANALYSIS OF ASHOK

LEYLAND PRESENTED BY:

KARTIK PARASHAR

AUTOMOBILE INDUSTRY IN INDIA • The Indian auto industry is one of the largest in the world.

• The automotive industry in India is one of the largest in the world with an annual production of 23.37 million vehicles in FY 2014-15, following a growth of 8.68% over the last year.

• The automobile industry accounts for 7.1 per cent of the country's gross domestic product (GDP).

• The Two Wheelers segment, with 81 per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a young population.

MAJOR PLAYERS IN M&HCV INDUSTRY

INTRODUCTION OF THE COMPANY• Ashok Leyland is an Indian automobile manufacturing company headquartered in Chennai, India.

• It was founded in 1948, it is the 2nd largest commercial vehicle manufacturer in India, 4th largest manufacturer of buses in the world and 16th largest manufacturer of trucks globally.

• Operating six plants, Ashok Leyland also makes spare parts and engines for industrial and marine applications.

• It sells about 60,000 vehicles and about 7,000 engines annually. It is the second largest commercial vehicle company in India in the medium and heavy commercial vehicle segment with a market share of 38.39% (2015-16). 

• With passenger transportation options ranging from 19 seaters to 80 seaters, Ashok Leyland is a market leader in the bus segment.

• In the trucks segment Ashok Leyland primarily concentrates on the 16 ton to 25 ton range of trucks.

ASHOK LEYLAND: AN OVERVIEWTYPE PUBLIC

TRADED AS NSE: ASHOKLEY

BSE: 500477

INDUSTRY AUTOMOTIVE

FOUNDED 07 SEP 1948

REVENUE Rs 206.58 billion

PARENT Hinduja Group

SECTOR M&HCV

SHARE PRICE 76.75 (07.12.2016)

52 WEEK L/H 73.50/112.90

HEADQUARTER CHENNAI, TN, INDIA

CHAIRMAN DHEERAJ G HINDUJA

INVESTMENT IN THE INDUSTRY

• In order to keep up with the growing demand, several auto makers have started investing heavily in various segments of the industry during the last few months.

• The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.06 billion during the period April 2000 to March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).

GOVERNMENT INITIATIVES IN INDUSTRY

• Government of India aims to make automobiles manufacturing the main driver of ‘Make in India’ initiative, as it expects passenger vehicles market to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.

• In the Union budget of 2015-16, the Government has announced to provide credit of Rs 850,000 crore (US$ 124.71 billion) to farmers, which is expected to boost the tractors segment sales.

• The Government plans to promote eco-friendly cars in the country i.e. CNG based vehicle, hybrid vehicle, and electric vehicle and also made mandatory of 5 per cent ethanol blending in petrol.

PARTICULARS P/E RATIO 2016 2015 2014 2013 2012

BASIC EPS 2.54 1.20 0.11 1.63 2.13

DIVIDEND SHARE

0.95 0.45 0.00 0.60 01

NET PROFIT 721.78 334.81 29.38 433.71 565.98

REVENUE 66.14 47.66 37.37 46.91 48.37

INVESTMENT 0.00 408.45 384.37 0.00 0.00

TOTAL C.A. 5290 4693 3855 4296 4303

NET SALES 206587 153409 114867 124812 12943

PAT 10707 1339 (1641) 4337 5660

P/E RATIO 24.74