Ashok Leyland has attained its strong stand in the market as Commercial Vehicle company since many years. This company is better placed to benefit from cyclical upturn arising from favorable macros and regulatory factors over a longer-term.
Looking at the company's total income for the fourth quarter which was almost flat on a YOY basis, the company has faced serious rise in input costs. Also 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.
Lastly after anaysing its growth movements, I would say you must wait for a clear signal of turnaround in auto demand before going out and buying the stock.