Moneycontrol
Get App
Last Updated : Sep 18, 2018 01:31 PM IST | Source: Moneycontrol.com

Buy Ashoka Buildcon; target of Rs 225: HDFC Securities

HDFC Securities is bullish on Ashoka Buildcon has recommended buy rating on the stock with a target price of Rs 225 in its research report dated August 15, 2018.

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

HDFC Securities' research report on Ashoka Buildcon


ASBL delivered weak 1QFY19 performance with revenue 3.9% lower than our estimates. Construction revenue came in at Rs 6.3bn, sale of goods at Rs 0.4bn and BOT at Rs 0.1bn. Exceptional settlement Rs 0.1bn in Chittorgarh Bypass has been adjusted from revenue. Blended EBITDA margins were lower at 10.4% (-267bps YoY, -107bps QoQ) on account of a larger share of power segment (Rs 1.3bn in 1QFY19) in which ASBL generates lower margins. Toll Hikes were effected from Apr-18 across major projects where as Bhandara and Durg hikes would apply from Sep-18. YoY toll grew 7.2%, 13.6%, 6.8%, 2.5%, 9.1% and 23.8% YoY in Belgaum, Dhankuni, Bhandara, Durg, JN and Sambalpur respectively.


Outlook


The upcoming bid season is strong with ASBL participating in bids worth ~Rs 250bn, and targeting Rs 50-70bn of HAM projects in FY19E in addition to Rs 10-15bn in Power T&D. We maintain BUY on ASBL with a bonus adjusted TP of Rs 225/share.


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.

First Published on Aug 17, 2018 04:00 pm
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant