Buy Ashoka Buildcon; target of Rs 175: Motilal Oswal
Motilal Oswal is bullish on Ashoka Buildcon has recommended buy rating on the stock with a target price of Rs 175 in its research report dated January 31, 2019.
February 01, 2019 / 02:07 PM IST
Motilal Oswal's research report on Ashoka Buildcon
ASBL’s standalone revenue grew 62% YoY to INR10.7b in 3QFY19, beating our estimate of INR8.6b. Sales were supported by better-than-estimated execution of projects in hand. Construction revenue grow 66% YoY supported by strong growth in the power T&D segment (+94% YoY to INR2.5b). EBIDTA grew 99% YoY to INR1.5b, ahead of our estimate of INR1.0b, with margin improvement of 265bp to 14.0% from 11.3% in the year-ago period. Reported profit stood at INR622m (+32% YoY) below our estimate of INR700m. During the quarter, ASBL provided for INR398m towards its exposure to GVR Infra (total exposure at INR806m); adjusting for this PAT stood at INR895m (+91% YoY).
We maintain our Buy rating with SOTP-based TP of INR175.
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