The TechQuilt Did Ashok Leyland Stocks Really Plunge 51%?
Shock at the start of trade! On July 16, 2025, Ashok Leyland shares appeared to crash from ₹250.85 to ₹123.95, a drop of nearly 51%. Panic set in among investors. But this wasn’t a market meltdown. Here’s why the alarm was false and what savvy investors should know.
1. What Caused the Sudden Drop?
This steep decline was not due to falling business performance, but rather a 1:1 bonus share issue that started on July 16. For every share owned, investors received one extra share. When a stock turns “ex-bonus,” the price is automatically halved, twice as many shares, each worth half as much.
2. Price Halved, Not Your Wealth
Despite the drastic chart drop, no actual value was lost. If you held 100 shares at ₹250 each (₹25,000), after the bonus you’d own 200 shares at ₹125 each—totaling the same ₹25,000. It’s a technical adjustment, not a crash.
3. Timeline & What Comes Next
- Record date (eligible for bonus): July 16, 2025
- Bonus allotment date: July 17
- New bonus shares tradable from: July 18
4. Why This is Good News
- First bonus issue since 2011—signaling strong earnings and cash reserves.
- Creates more liquidity: more shares available for trading at a lower price point.
Analysts Weigh In
Some brokers highlight this as a sign of financial strength and improved liquidity, not a red flag. On the contrary, analysts still recommend buying, projecting EPS growth near 5% in FY26 and potential upside to ₹270+ per share.
Final Takeaway
- Price drop = technical adjustment, not a loss.
- Investor value remains the same with twice as many shares.
- Positive signal overall: Bonus share reflects solidity.
- Keep track: Shares credited July 17, tradable July 18.
Conclusion
The nearly 51% plunge in Ashok Leyland’s stock price on July 16, 2025, was just a bonus-share adjustment, not a market collapse. Far from losing money, investors now hold double the shares, value intact. This strategic move shows confidence from the company, boosts liquidity, and owes more to math than market volatility.
What do you think? Will this bonus move drive future gains? Let us know below!
