ICICI Direct's research report on Ashoka Buildcon
Ashoka Buildcon’s (ABL) revenues grew 28.2% YoY to Rs 876.8 crore but were below our expectation of Rs 1,105.5 crore possibly due to weaker-than-expected execution during the quarter. EBITDA margins expanded 60 bps YoY to 12.5% but were lower than our expectation of 13.0%. RPAT grew just 1.2% YoY to Rs 64.7 crore on account of higher depreciation and higher tax expense (32.4% tax in Q1FY20 vs. 26.7% in Q1FY19).
OutlookHence, we expect EPC revenues to grow robustly at 14.2% CAGR to Rs 4,980.8 crore. We continue to maintain our BUY recommendation on the stock with an SoTP-based target price of Rs 150/share.
For all recommendations report, click here
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