Bhavin Shah, CEO at Equirus Securities told CNBC-TV18, "We have done a lot of work on the road sector in terms of the companies in that space. We believe that two companies, Ashoka Buildcon and Sadbhav Engineering have had very careful approach to selecting projects and also very good track record in completing projects."
"Ashoka Buildcon has a very good mix of completed projects plus couple of BOT projects becoming operational soon and that will support healthy cashflow. The cash position will allow them to re-enter the bidding whenever they see the opportunity," he added.
"They have been very careful not to get involved in aggressive bidding that was going on in the sector. The margins are pretty good as well and when we value the company based on their entire portfolio projects, we see decent upside in the stock. That is why we are looking at Rs 77 as a fair value and that suggests a good upside from here as well."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
