CMP: 27


Ashok Leyland Limited manufactures medium and heavy duty commercial vehicles, including buses, tractors, dumpsters, haulage trucks, fire engines, and defense sector vehicles. The Company also manufactures industrial & marine engines, ferrous castings and spare parts for automobiles. Ashok Leyland sells its products in India and abroad.

Ashok Leyland is a good bet in mid-cap space. Attractive P/E of 13 when other auto stocks trade above 20. Excellent dividend yields of 2.72% in the last 12 months. Profits dipped last quarter, from 104 Crores last year to 43 Crores. Stock price has corrected from 80 to 55 as a result of that. NPM has lots of room to grow and currently at over 5%. It is not a multi-bagger, and buy with decent expectations of 30% a year.