Sharekhan has given Buy recommendation for Ashoka Buildcon with a target price of Rs. 125 in its research report issued on Aug 12, 2021
Sharekhan’s research report on Ashoka Buildcon
Q1FY2022 standalone revenue was higher than expected, while OPM came in lower than estimate. Order inflow of Rs. 2,980 crore till date with target of bagging another Rs. 4000 crore orders during balance fiscal. Management has marginally increased FY2022 standalone revenue and OPM guidance. Strong order book at 2.5x provides healthy revenue visibility. Asset monetisation guidance remains intact to get completed by Q3FY2022.
We retain Buy on Ashoka Buildcon Limited (Ashoka) with an unchanged PT of Rs. 125, considering healthy order backlog, comfortable liquidity position, and an improving industry outlook.