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Why this multibagger stock is showing 50% fall today in some apps today

Why this multibagger stock is showing 50% fall today in some apps today

Ashok Leyland ex-bonus: The mutlibagger commercial auto stock is showing up to 50 per cent fall in some trading apps today as all these the shares turned ex-bonus, adjusting to the corporate action.

Pawan Kumar Nahar
Pawan Kumar Nahar
  • Updated Jul 16, 2025 9:49 AM IST
Why this multibagger stock is showing 50% fall today in some apps today

Ashok Leyland ex-bonus: Mutlibagger commercial vehicle stock Ashok Leyland is showing up to 50 per cent fall in some trading apps today as all these the shares turned ex-bonus, adjusting to the pre-announced corporate action. The company had announced to issue bonus stocks for the eligible shareholders in 1:1 ratio, which is indicating a sharp downside in its stock price.

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Ashok Leyland had announced to issue 293,65,27,276 bonus shares with a face value of Re 1 each, fixing Wednesday, July 16 as the record date to determine the eligibility for the same. The company announced Thursday, July 17, as the deemed date of allotment and the effective listing of the bonus shall be done on Friday, July 18.

Ashok Leyland has issued one share with a face value of Re 1 each for every one share held with a face value of Re 1 each held as on the record date. Only those shareholders who hold the stock as of the record date will be eligible to receive the bonus shares of Ashok Leyland. Investors buying the stock on or after the ex-demerger date will not be considered eligible.

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Shares of Ashok Leyland settled at Rs 250.85 on Tuesday and opened at Rs 125.70 on Wednesday, post the adjustment of 1:1 bonus. It is possible that trading apps of certain brokerages might be showing the unadjusted share price for yesterday and, thus, suggesting an up 50 per cent-odd fall on the counter.

Post adjustment of bonus issue, shares of Ashok Leyland dropped nearly 1.7 per cent to Rs 123.30 on Wednesday, with its total market capitalization falling to Rs 72,500 crore mark. The stock has tumbled nearly 7 per cent from its adjusted 52-week high at Rs 132.35, hit in September 2024. The stock zoomed more than 550 per cent from its adjusted covid-19 low at Rs 19.1.

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Promoters own 36.70 per cent stake in the company, while public investors own 51.52 per cent stake as of March 31, 2025, while public shareholding stood at 48.09 per cent. Mutual funds and insurance companies held 13.44 per cent stake in the company, while more than 27.84 crore retail investors own about 9.49 per cent stake in the company for Q4FY25.

Volumes grew marginally by 0.8 per cent YoY, led by MHCV growth of 0.7 per cent and LCV growth of 1 per cent. Blended realization is expected to decline by 10bps due to lower contribution of MHCVs. Ebitda margin to show slight improvement of 17 bps at 10.8 per cent on YoY basis due to better pricing offset by higher steel prices. Overall, PAT is expected to improve by 5 per cent YoY, said SMIFS with a 'buy' rating on Ashok Leyland.

Emkay Global Financial Services expects Ashok Leyland to report a revenue of Rs 12,337.3 crore, up 3.4 per cent YoY and 1.6 per cnet QoQ. Ebitda is seen at Rs 2,467.5 crore, up 2.2 per cent YoY and 0.7 per cent QoQ. Net profit may come in at Rs 236 crore, down 33.4 per cent YoY and 17.8 per cent QoQ. Emkay has a 'buy' rating on the stock with a target price of Rs 280 (adjusted Rs 140).

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Jul 16, 2025 9:47 AM IST
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