HDFC Securities' research report on Ashoka Buildcon
Earnings beat is driven by better-than-expected execution, controlled expenses, and one-offs. Labour availability has improved to ~90% (from 50-65% QoQ) with sites working at ~85% pre-COVID efficiency (vs. ~50% QoQ). After suspension during the first phase of lockdown, tolling reached 85% of pre-COVID level within three weeks of resumption and continues to be at ~90% level across projects. Low net D/E of 0.02x and comfortable liquidity insulate ABL from COVID-19 headwinds. No change in FY21/22 estimates.
OutlookWe estimate 15% EBITDA CAGR during FY20-23E.
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