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Ashok LeylandNSE:ASHOKLEY -0.28%86 Return-on-Tangible-Equity is 45.29% as of Mar. 2026, which is 36% above its 10-year median of 33.34. GuruFocus rates NSE:ASHOKLEY with a GF Score™ of 86/100 and a GF Value™ of ₹127.98 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 199 Farm & Heavy Construction Machinery companies, Ashok Leyland ranks better than 88.44% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ashok Leyland's annualized net income for the quarter that ended in Mar. 2026 was ₹51,628 Mil. Ashok Leyland's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹113,986 Mil. Therefore, Ashok Leyland's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 45.29%.
The historical rank and industry rank for Ashok Leyland's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ASHOKLEY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.91 Med: 33.34 Max: 39.7
Current: 34.01
During the past 13 years, Ashok Leyland's highest Return-on-Tangible-Equity was 39.70%. The lowest was -6.91%. And the median was 33.34%.
NSE:ASHOKLEY's Return-on-Tangible-Equity is ranked better than 88.44% of 199
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.26
vs NSE:ASHOKLEY: 34.01
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ashok Leyland Return-on-Tangible-Equity Related Terms
Ashok Leyland Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ashok Leyland's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:ASHOKLEY vs CAT, DE, PCAR: Return-on-Tangible-Equity Comparison
For the Farm & Heavy Construction Machinery subindustry, Ashok Leyland's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ashok Leyland Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Ashok Leyland's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ashok Leyland's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 45.29% mean?
Ashok Leyland (NSE:ASHOKLEY) has a Return-on-Tangible-Equity of 45.29% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ashok Leyland and its competitors. This is 36% above median its historical median of 33.34. According to the industry distribution chart, Ashok Leyland ranks #23 out of 199 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 11.6%.
Is Ashok Leyland's Return-on-Tangible-Equity too high?
Ashok Leyland's current Return-on-Tangible-Equity of 45.29% is 36% above median its 10-year median of 33.34. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Equity is 9.26. Ashok Leyland's value of 45.29% is 389.1% above this industry median. Based on the distribution chart, Ashok Leyland ranks #23 out of 199 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Ashok Leyland has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ashok Leyland's Return-on-Tangible-Equity compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Ashok Leyland ranks #23 out of 199 companies for Return-on-Tangible-Equity. This places Ashok Leyland in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.26. Ashok Leyland's value of 45.29% is 389.1% above this benchmark. While the company's 10-year median is 33.34 vs. the industry median of 9.26, Ashok Leyland has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Equity among Farm & Heavy Construction Machinery companies is 9.26, based on 199 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ashok Leyland's current Return-on-Tangible-Equity of 45.29% is 389.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ashok Leyland and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Equity is 9.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ashok Leyland's current Return-on-Tangible-Equity is 45.29%, which is 36% above median its own 10-year median of 33.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ashok Leyland stock overvalued right now?
Based on GuruFocus' analysis, Ashok Leyland (NSE:ASHOKLEY) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹127.98, compared to a current price of ₹154.80 — trading 21% above its estimated fair value. The current Return-on-Tangible-Equity is 45.29%, which is 36% above median its 10-year median of 33.34 and 389.1% above the Farm & Heavy Construction Machinery industry median of 9.26. Ashok Leyland's overall GF Score™ is 86/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ashok Leyland (NSE:ASHOKLEY), the current Return-on-Tangible-Equity is 45.29% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ashok Leyland (NSE:ASHOKLEY) Overvalued in 2026?
Based on GuruFocus' analysis, Ashok Leyland stock appears to be overvalued.
The current stock price of ₹154.80 is trading 21% above its estimated GF Value™ of ₹127.98.
GuruFocus considers Ashok Leyland to be Modestly Overvalued.
Key valuation signals for NSE:ASHOKLEY:
Return-on-Tangible-Equity: 45.29% (36% above median its 10-year median of 33.34)
GF Value™: ₹127.98 vs. price of ₹154.80 (21% above fair value)
Industry Position: 389.1% above the Farm & Heavy Construction Machinery median (#23 of 199)
No single metric tells the full story. See the NSE:ASHOKLEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ashok Leyland Ltd is an automobile manufacturing company. The company manufactures commercial vehicles, engines, spare parts, and accessories, with the vast majority of revenue being derived from commercial vehicle sales. It produces and sells vehicles across different categories such as Trucks, Buses, Light Commercial Vehicles, and Defence. The company's operating segments are; Commercial vehicles, and Financial services. Geographically, it derives the majority revenue within India and the rest from other markets.
86GF Score
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