Tata Truck Stock Trades Below Ashok Leyland

By Jony Shekhawat | Published Date : December 09, 2025

Tata truck business trades cheaper than the Ashok Leyland truck as growth and profit outlook slowly improve.

Tata commercial vehicle business is trading cheaper than Ashok Leyland's truck business, while growth and margins are slowly improving, making investors more positive.

Tata Truck Business Trading Lower Than Competitor

Table Of Contents

1. Tata Truck Business Trading Lower Than Competitor

2. Growth Expected In Revenue And Profit

3. Why Tata Mini Truck And Heavy Truck Segment Is Getting Strong

4. Ashok Leyland Truck Comparison Still Going On

5. IVECO Deal Can Change Game For Tata

6. Should Investors Look At This Stock

Read More: VECV Reports Strong Sales Jump in November 2025

Tata Motors Commercial Vehicles is still trading at around 6% discount compared to the Ashok Leyland truck stock. Even though Tata has a bigger size and strong market hold, the stock price has not caught up with Ashok Leyland truck. Many experts feel this gap can be reduced in the coming years as Tata truck business becomes more stable and profitable.

Growth Expected In Revenue And Profit

As per Ambit Capital, Tata Motors CV business can see around 6% CAGR growth in revenue and about 8% CAGR growth in Ebitda between FY25 and FY28. This growth is expected to come from high-margin non-core income and better control on costs. This also helps the company handle ups and downs of the truck and bus market in a better way.

Why Tata Mini Truck And Heavy Truck Segment Is Getting Strong

Tata Motors holds around 35% market share by volume and nearly 42% by revenue in the commercial vehicle space. Tata truck models above 31 tonnes have more than 60% market share. Medium and heavy trucks contribute only around 35% of volume but give almost 68% of total revenue. Tata mini truck models like Tata Ace Gold are also important, but the real money comes from bigger trucks and tippers.

Ashok Leyland Truck Comparison Still Going On

Tata truck business is compared daily with Ashok Leyland truck business. Earlier, Tata lost some share in the light commercial vehicle area, where Tata mini truck demand became weak. Because of this, the stock started trading at a discount to Ashok Leyland truck. Also, Ashok Leyland buses kept steady demand, which supported its business. But now things are slowly changing as Tata improves products and dealer network.

IVECO Deal Can Change Game For Tata

The planned acquisition of IVECO is seen as a big step. After this deal, Tata’s commercial vehicle business can become more global. Experts believe this deal can help Tata use low-cost manufacturing from India and better technology from IVECO. This can help Tata truck business grow outside India as well and reduce dependence only on the Indian market.

Should Investors Look At This Stock

Ambit Capital has given a target price of around Rs 430 for Tata Motors CV. On future numbers, the stock is valued at about 24.5 times FY27 earnings. Ambit has said it prefers Tata over Ashok Leyland in the commercial vehicle space. With better cash flow, lower debt pressure, and improving margins, the Tata truck business looks more stable than before. Still, investors should always remember that truck and bus demand moves in cycles.

Also Read: Ashok Leyland Launches New Dost Plus XL CNG in India

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Frequently Asked Questions on Tata Truck

Q1. Why is the Tata truck stock trading at a discount?

Ans. Tata truck stock trades at a discount due to slower past volume growth and weaker light commercial vehicle market performance.

Q2. Is Tata Motors CV a good long-term buy?

Ans. Many analysts believe Tata Motors CV has good long-term potential due to improving margins and strong position in the heavy truck segment.

Q3. How does the Ashok Leyland truck compare with the Tata truck?

Ans. Ashok Leyland truck has shown more stable growth recently, while Tata truck is slowly improving with better products and cost control.

Q4. What role does the Tata mini truck play in Tata’s business?

Ans. Tata mini truck models help Tata reach small business users and last-mile delivery markets, adding steady volume support to the overall business.

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