Here’s why Ashok Leyland shares jumped over 7% on Thursday

Shares of Ashok Leyland Ltd gained 6.67% on Thursday to close at ₹158.88 on the NSE after touching an intraday high of ₹162, driven by a mix of positive demand indicators and a restructuring move within

the Hinduja Group.

Market participants pointed to strong November VAHAN retail registrations ahead of the company’s monthly sales announcement on Monday, December 1. Retail numbers for November 1–27, have already surpassed the full-month tally for November 2024, coming in at 13,027 units versus 12,923 units.

Sentiment was further boosted by theNDL Ventures board approval to merge Hinduja Leyland Finance (HLF) into NDL Ventures — a move that analysts say could unlock value for Ashok Leyland, which owns a 61% stake in HLF.

The reverse-merger will also enable the group’s NBFC arm to get listed. As per the scheme, HLF shareholders will receive 25 NDL Ventures shares for every 10 HLF shares, with the record date to be announced later.

Analysts noted that HLF’s true valuation was not fully reflected in Ashok Leyland’s stock price, and that the merger could help close that gap.

The stock has also been supported by improving fundamentals. Earlier this month, Ashok Leyland crossed a long-standing market-share barrier in the medium and heavy commercial vehicle (MHCV) category. Managing Director and CEO Shenu Agarwal said the company had moved past the 29.5–30% range to reach 31% in the first half of the year. “We have achieved 31% and therefore now we should try and touch 32% and beyond,” he said.

The company is also stepping up its export strategy, with a target of 25,000 units over the next two to three years. Meanwhile, the broader CV cycle has strengthened following the recent GST rate cut, with October’s festive and seasonal demand lifting Ashok Leyland’s sales by 16%, outperforming industry estimates of around 11%. A notable rebound in the bus segment, where sales rose 34%, has also contributed to improved sentiment.