Ashok Leyland Share Price Crash: Did It Really Fall 51%? What Investors Need to Know

 

Ashok Leyland’s share price appeared to drop nearly 51% on July 16, 2025, but there is no need to panic. The reason is not a stock market crash or bad company news — it is because of the company’s 1:1 bonus issue that came into effect.

Why Did Ashok Leyland Shares Fall?

On July 16, Ashok Leyland shares started trading ex-bonus, which means the stock price was adjusted to reflect the bonus shares. The bonus ratio was 1:1, meaning shareholders got one extra share for every share they already owned.

So, even though the price per share has dropped, the total value of your holdings stays the same.

For example:

·         Before bonus: 1 share worth ₹100 

·         After bonus: 2 shares worth ₹50 each 

·         Your total value: ₹100 (no loss!)

Price Movement on NSE:

On July 16, the share opened at around ₹125 on the   NSE, a drop of over 50% from the earlier close of ₹251. However, this is just a price adjustment due to the bonus issue.

By the end of the day, the share price slightly dipped again, trading near ₹124, a 1% fall from the morning price.

Bonus Issue Details:

Ashok Leyland had announced this   1:1 bonus issue back in   May, while reporting its   Q4 FY25 results. The company said the record date to check shareholder eligibility was   July 16, and the bonus shares will be credited on July 17. Investors can start trading the new shares from July 18.

This is the company’s first bonus issue in 14 years — the last was in   2011, also a 1:1 ratio.

Strong Q4 Performance:

Ashok Leyland posted solid growth in Q4 FY25:

·         Net profit: ₹1,246 crore (up 38.4%)

·         Q4 FY24 profit: ₹900 crore

·         Revenue: ₹11,906.7 crore (up 5.7%)

The company continues to show strong performance and stable growth. As of now, Ashok Leyland stock has a P/E ratio of around 44.

Final Takeaway:

The sharp fall in Ashok Leyland’s stock price is not a real loss for investors. It is a technical adjustment because of the bonus issue, and the value of your investment is still the same. If you held shares before July 16, you would now have double the shares, and that’s always good news in the long run!

Related Link:

https://www.indiatoday.in/business/market/story/ashok-leyland-share-price-bonus-issue-not-down-50-percent-down-2756443-2025-07-16