Buy Ashoka Buildcon, advises Saurabh Mukherjea

Saurabh Mukherjea, Head of Equities of Ambit Capital advised retail investors to buy Ashoka Buildcon. They will benefit quite nicely over the next couple of years.

Mukherjea told CNBC-TV18, “Ashoka Buildcon is one of the rare construction companies where there is no balance sheet stress. SBI-Macquarie did a private equity deal 7 or 8 months ago which really has taken out balance sheet stress. Execution has been good over the last couple of years. It is a decent management team with private equity backing in there.”
He further said, “Infrastructure Development Finance Company (IDFC) was the initial investor in the company and they still have a large holding. So with quality investors, a good management team, a strong balance sheet, 1 time price-to-book - it looks to me to be a juicy construction company especially if you are a retail investor and do not have to worry about price impact. I would say buy companies like this at this stage of the economic recovery. You will benefit quite nicely over the next couple of years.”