Buy Ashoka Buildcon; target of Rs 273: Angel Broking

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26 Aug, 2025 12:21

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Angel Broking is bullish on Ashoka Buildcon and has recommended buy rating on the stock with a target of Rs 273 in its May 21, 2012 research report.

“For 4QFY2012, on a consolidated basis, Ashoka Buildcon (ABL) reported a decent set of numbers (adjusting for impact of change in accounting policy in 4QFY2011). Order book as of 4QFY2012 stood at Rs4,967cr (3.9x FY2012 E&C revenue), providing revenue visibility. As per management, the PE deal of Rs700cr-800cr for funding its equity requirement of under-construction projects is expected by the end of 1QFY2013. We maintain our Buy rating on the stock.”

“ABL’s top line witnessed decent growth of 16.9% (excluding Rs200cr revenue in 4QFY2011 owing to change in accounting policy) to Rs468cr, marginally lower than our estimate of Rs495cr. On the EBITDAM front, ABL’s margin came in at 20.0%, 30bp lower than our estimate of 20.3%. At the earnings front, ABL reported decent growth of 21.9% (excluding exceptional income of Rs107cr in 4QFY2011) to Rs47cr, which was higher than our estimate of Rs34cr owing to lower depreciation. During the quarter, ABL changed its depreciation policy, resulting in lower depreciation for the quarter.”

“ABL needs to infuse equity worth ~Rs1,100cr (including Cuttack Angul project) for its under-construction/development road BOT projects. Further, as per management, ABL is at an advanced stage of roping in a strategic investor for investment of Rs700cr-800cr in the holding company (eight road projects) and expects the deal to happen by the end of 1QFY2013. We believe conclusion of this deal would be positive for the company as it would not only aid ABL to put in current equity requirement but also provide legroom for more wins in the future. However, valuation at which the deal is concluded would be an important thing to look out for. We maintain our Buy recommendation on the stock with an SOTP target price of Rs273,” says Angel Broking research report. 

Institutional holding more than 40% in Indian cos

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