In terms of valuation, the stock quotes at 13 times P/E but that can be quite elusive. Here is why. Look at the latest results first. The net profit of the company fell by 12% in the fourth quarter to Rs.652 crore. Total income for the fourth quarter was almost flat on a YOY basis. The company has faced serious rise in input costs on the one side and demand compression on the other side. Also post September last year the company has faced serious problems of funding due to the slowdown in NBFCs. While Ashok Leyland appears to be relatively better off compared to other auto companies, the sentiments on auto is likely to be tepid. You must wait for a clear signal of turnaround in auto demand before going out and buying the stock.