8DECEMBER, 2025ASHOK LEYLAND REACHES 1 TRILLION MARKET CAP AFTER 80 PERCENT RALLYTATA ELECTRONICS DEEPENS IPHONE MANUFACTURING WITH 1,500 CR FUNDINGAshok Leyland Ltd entered the 1 trillion market cap club on Thursday as its shares continued their upward momentum, marking a major valuation milestone for the Hinduja Group­owned commercial vehicle manufacturer. The achievement comes despite a weak Indian stock market, underlining the stock's strong independent performance.During intraday trade, Ashok Leyland market capitalisation crossed 1 trillion as the Ashok Leyland share price rose about 3 per cent to trade around 171 on the BSE. The rally stood out against the BSE Sensex, which was trading in the red during the session, highlighting sustained institutional investors' interest in the company.The Ashok Leyland stock rally reflects a sharp recovery over the past several months. From its 52-week low of 95.20 recorded in early April 2025, the stock surged nearly 80 per cent. Over the past one month alone, the stock gained close to 17 per cent, outperforming most auto stocks India and peers in the commercial vehicle sector.Market participants attribute the move to a mix of sectoral and company-specific drivers. Demand conditions have improved due to higher freight demand growth, steady infrastructure spending India, and replacement demand across fleets. Lower input costs and better pricing discipline have supported margins, improving equity market performance expectations.Ashok Leyland valuation has also benefited from its focus on product mix improvement, expansion in higher-margin segments, and sustained cost controls. Positive analyst commentary and upgrades strengthened sentiment, reinforcing the broader auto sector rally seen in recent weeks.With this milestone, Ashok Leyland joins leading Indian automobile companies such as Maruti Suzuki, Tata Motors, and Mahindra & Mahindra in crossing a major market cap milestone. The development marks a re-rating for the company within stock market news India after a prolonged cyclical phase.Going ahead, investors will track demand sustainability, execution efficiency, and market share trends to assess the durability of this rally. The Tata Group has invested an extra 1500 crore in its electronics segment and this move has given a massive boost to the iPhone production of Tata Electronics.This injection helps the group to aggressive expansion strategies in the fast growing electronics market of India, and further strengthens its relationship with Apple with the global supply chains realigning.Following this round, the Tata Group has invested around 4500 crore in Tata Electronics over the last one year. The company is a key contract maker to Apple that assembles iPhones in India to sell them within the country and in huge export markets in the US and Europe. This has reduced Tata Electronics to a major contributor in the strategy by Apple of diversifying its production beyond China.The new capital will enable Tata Electronics to increase its production and strengthen its balance sheet. The company also increased its authorized capital to 20,000 crore, which shows that it is willing to invest more capital as the demand increases. In terms of the industry, this move is an indication of growing confidence in the ability of India to achieve large scale and high precision electronics manufacturing.In addition to smart phones, Tata electronics is committing substantial capital in semiconductors, an area that is considered critical in long term competitiveness. The company is constructing a semiconductor fabrication plant in Gujarat and an assembly and testing facility in Assam in accordance with the goal of India to establish a domestic chip ecosystem.Despite increasing its revenues, Tata Electronics is still not making any profits due to massive initial investment in technology, infrastructure and talent. However, its losses are reducing, which means it is becoming more efficient in its operations. TOP STORIES8DECEMBER, 2025
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