Moneycontrol
Get App
Last Updated : Jun 12, 2019 04:10 PM IST | Source: Moneycontrol.com

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 May 26, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on Ashoka Buildcon


Better-than-expected execution drives operational beat: 4QFY19 standalone revenues grew 86% YoY to INR13.1b (our est. INR9.6b); sales were supported by better-than-estimated execution of projects in hand. EBIDTA grew 125% YoY to INR1.8b (our est. INR1.2b), with margins improving 240bp to 13.9% from 11.5% in the year-ago period. Reported profit declined 7% YoY to INR980m (our est. INR800m). During the quarter, ASBL provided for INR73m towards its exposure to GVR Infra (total exposure at INR806m); adjusting for this, PAT stood at INR1.0b (-2.5% YoY). Despite strong revenue growth (+86% YoY), Adj. Pat declined 2.5% YoY due to lower other income (INR380m v/s INR612m in 4QFY18) and higher tax rate (34.5% v/s 9.3% in 4QFY18).


Outlook


We cut our earnings estimate by 7%/9% for FY20/21 to factor in (a) delay in execution pick-up of three HAM projects where appointed date is yet to be received, and (b) the higher interest cost given the rise in debt (taken for the WC and equipment loan purpose). We maintain our Buy rating with SOTP-based TP of INR175.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
First Published on Jun 12, 2019 04:10 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant