Image Source: GoodReturns
Ashok Leyland, the flagship company of the Hinduja Group and one of India’s leading commercial vehicle manufacturers, has announced an interim dividend of ₹4.25 per equity share for FY 2024-25. The company’s Board of Directors approved the dividend at its meeting held on May 16, 2025, reinforcing Ashok Leyland’s commitment to rewarding shareholders amid a period of steady operational performance.
Interim Dividend Announced:
The Board of Ashok Leyland has declared an interim dividend of ₹4.25 per equity share for the financial year 2024-25. This follows a previous interim dividend of ₹2.00 per share announced in November 2024, bringing the total interim payout for the year to ₹6.25 per share so far.
Record Date Set:
The company has fixed Thursday, May 22, 2025, as the record date to determine eligible shareholders for the interim dividend. Shareholders whose names appear in the company’s register as of this date will be entitled to receive the payout.
Dividend Yield and Track Record:
Ashok Leyland’s dividend yield stands at around 3%, with a history of consistent payouts. Over the past two decades, the company has issued 22 dividends, demonstrating a strong track record of shareholder returns.
Share Performance and Market Sentiment:
As of May 14, 2025, Ashok Leyland’s share price was ₹234, with analysts noting the stock is forming a stable base and could see further upside if it breaks key resistance levels. The announcement of the dividend is expected to bolster investor sentiment during the ongoing Q4 results season.
Upcoming Financial Results:
The company’s Board is scheduled to meet again on May 23, 2025, to consider and approve the audited financial results for the quarter and year ended March 31, 2025, and to discuss the proposal for a final dividend, if any.
Insight
Ashok Leyland’s interim dividend announcement underscores its robust financial health and commitment to rewarding shareholders, even as the commercial vehicle sector navigates cyclical challenges. The company’s consistent dividend history, stable share performance, and proactive communication of record dates provide clarity and confidence to investors. With Q4 results and the possibility of a final dividend on the horizon, Ashok Leyland remains a key stock to watch in the Indian auto sector.
Source: Goodreturns, Economic Times, ICICI Direct, Capital Market, Moneycontrol
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