Ashok Leyland’s stock remained in focus as multiple brokerages issued positive notes on the automaker’s ambitious push into the battery ecosystem. The company has announced plans to invest in battery development and manufacturing in India, aiming to secure captive supply for its growing electric vehicle (EV) portfolio.
Citi reiterated its buy call with a target price of ₹140 per share, highlighting Ashok Leyland’s planned investment of ₹300–600 crore over the next two to three years in battery pack manufacturing based on lithium iron phosphate (LFP) technology. In the longer term, the company has outlined a potential investment of around ₹5,000 crore over the next seven to ten years, with management not ruling out the possibility of entering battery cell production at a later stage. Citi noted that the company estimates a captive requirement of 4–6 GWh over the next four to five years.
Nomura also maintained a buy rating with a target price of ₹144, citing Ashok Leyland’s partnership with CALB Group to localise and strengthen its battery supply chain. The brokerage said the collaboration will help meet EV portfolio needs while tapping into the wider automotive and energy storage opportunity. Nomura added that the stock currently trades at 9x FY27F EV/EBITDA, adjusted for subsidiaries, leaving room for upside.
Morgan Stanley retained its overweight stance with a target price of ₹144. The brokerage outlined a two-stage investment approach, with the first phase (FY26–28) focusing on modules, packs and building a centre of excellence around battery manufacturing. It expects the pack investment to have a payback period of four to five years. The second stage would see Ashok Leyland move into cell manufacturing, with the timing and scale depending on EV offtake trends. The company intends to prioritise LFP cells, with management guiding for captive demand of 4–6 GWh in the medium term.
All three brokerages underlined that Ashok Leyland’s strategy to build in-house capabilities in batteries positions it well for the EV transition, with the investments expected to enhance localisation, reduce dependence on imports and support long-term growth.
Disclaimer: This article is based on brokerage views as cited. The views expressed are those of the brokerages and do not represent investment advice.
