HDFC Securities has given Buy recommendation for Ashoka Buildcon with a target price of Rs. 175 in its research report issued on Feb 09, 2021
HDFC Securities’ research report on Ashoka Buildcon
Ashoka Buildcon (ASBL) reported APAT at Rs 856mn (+0%/-18% YoY/QoQ), missing our estimates by 5.4% despite 5% execution beat on lower-thanexpected margins. Labour availability has now fully normalised. Toll collections have also surpassed pre-COVID levels. ASBL didn’t win any major orders during the quarter (order book Rs 91.5bn). Low net D/E of ~0.1x and comfortable liquidity provide comfort.
Outlook
We maintain BUY on Ashoka Buildcon (ASBL) with an unchanged target price of Rs 175/sh. Potential monetisation of HAM/BOT assets and diversification of the order book could be positive triggers for the stock. No change in estimates.