Sharekhan has given Buy recommendation for Ashoka Buildcon with a target price of Rs. 125 in its research report issued on Feb 16, 2022

Sharekhan’s research report on Ashoka Buildcon

Q2FY2022 standalone operational performance was marginally lower than expectation. Order inflows remained strong at Rs. 8526 crore till date; It would target to cross Rs. 10,000 crore in FY2022 and improved on thereafter. The company wrote back Rs. 326 crore in consolidated books with re-measurement of obligations towards SBI Macquarie. It impaired Rs. 770 crore in standalone books for its investments in equity, CCDs and loans to ACL. The management expects strong standalone revenue growth of 25-30% y-o-y for FY2023 and FY2024. Post SBI Macquarie exit, it would be looking forward to divestment of couple of BOT assets and ten HAM assets.

Outlook

We retain a 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.

More Info on Trent

At 13:52 hrs Ashoka Buildcon was quoting at Rs 96.60, up Rs 2.25, or 2.38 percent.

It has touched an intraday high of Rs 97.25 and an intraday low of Rs 94.80.

It was trading with volumes of 49,257 shares, compared to its thirty day average of 139,016 shares, a decrease of -64.57 percent.

In the previous trading session, the share closed up 2.06 percent or Rs 1.90 at Rs 94.35.

The share touched its 52-week high Rs 125.00 and 52-week low Rs 78.40 on 26 October, 2021 and 06 May, 2021, respectively.

Currently, it is trading 22.72 percent below its 52-week high and 23.21 percent above its 52-week low.

Market capitalisation stands at Rs 2,711.79 crore.

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