Buy Ashoka Buildcon; target of Rs 263: Edelweiss
Edelweiss is bullish on Ashoka Buildcon has recommended buy rating on the stock with a target price of Rs 263 in its research report dated June 07, 2017.
June 09, 2017 / 05:05 PM IST
Edelweiss' research report on Ashoka Buildcon
EPC revenue grew 11% YoY with execution gathering pace on the Eastern Peripheral Expressway, JNPT and 2 state annuity projects in Karnataka. EBITDA margin, which declined 200bps YoY due to higher revenue share of EPC projects, is expected to improve once work on captive road projects picks up.
Healthy order inflow in road and power TD segments boosted order book to INR70bn (3.6x TTM EPC revenue). We expect execution to pick up going ahead driven by work on hybrid annuity (HAM) projects gaining traction. Maintain ‘BUY’ with SOTP‐based target price of INR 263.
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