Ashok Leyland 1:1 Bonus Issue After Rs. 4.25/Sh Dividend; Record Date OUT; Should You Buy This Auto Stock?

Commercial vehicle manufacturer Ashok Leyland has officially announced the schedule for its upcoming 1:1 bonus share issue. In an exchange filing made today, the company confirmed that the bonus shares will be allotted next week. Investors holding shares as of the record date will be eligible to receive one bonus share for every existing share held.

Bonus Issue Details

The company has officially fixed July 16, 2025, as the record date for the bonus share issue. This means shareholders holding Ashok Leyland shares on or before this date will be eligible to receive 1 bonus share for every 1 share held.

"This is further to our intimation dated July 7, 2025, informing the shareholders of the approval for the issue of bonus shares in the ratio of 1:1, i.e., 1 (one) new fully paid-up equity share of ₹ 1/- each for every 1 (one) existing fully paid-up equity share of the company. In this regard, we wish to inform you that the Allotment Committee has fixed Wednesday, July 16, 2025, as the record date for determining the eligible shareholders for allotment of Bonus Shares." the company said in its exchange filing dated July 9
The allotment date is set for Thursday, July 17, 2025, and the bonus shares will begin trading from July 18.

This is only the second bonus issue in the company's history; the previous one came more than two decades ago in June 2004, in a 10:1 ratio.

Dividend History

Ashok Leyland is also known for its strong dividend track record. The company has declared 23 dividends since June 2003. Most recently, Ashok Leyland declared a Rs. 4.25 interim dividend with a record date on May 22, 2025. Another Rs. 2 interim dividend was paid out in November 2024; Rs. 4.95 per share was looted in April 2024.

Ashok Leyland Share Price Performance

Ashok Leyland shares today closed at Rs. 251, gaining 1.15%. The stock jumped 3.22% in the past month and gained 17.07% over the past 6 months. Ashok Leyland shares so far in 2025 have registered a 12.65% gain for their investors.

Should You Buy Ashok Leyland Shares?

As per the consensus recommendation from Trendlyne, Ashok Leyland has received a 'BUY' rating based on inputs from 37 analysts. The consensus estimate, which aggregates analyst forecasts for listed companies, suggests a target price of Rs. 268, indicating an upside potential of 6.70% from the current levels.

About Ashok Leyland

Ashok Leyland India's second-largest commercial vehicle manufacturer with a presence in both domestic and international markets, Ashok Leyland is known for its strong product portfolio, including trucks, buses, defence vehicles, and EVs. It's a legacy brand and a key pillar of India's commercial vehicle (CV) industry. The company is the flagship of the Hinduja Group and was founded in 1948.

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