Buy Ashoka Buildcon; target of Rs 311: ICICI Securities

Buy

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

ICICI Securities research report on Ashoka Buildcon

Ashoka has entered into an agreement to sell its BOT asset to India Highway Concession Trust – sponsored by CDPQ, a Canadian pension fund. Ashoka shall receive INR 25bn as the deal’s proceeds. A major (sizeable) chunk of the proceeds would be earmarked for Macquarie exit – a fund invested in 2012. Delay in asset sale and providing an exit addresses a major concern on the stock.

Outlook

As a result, we upgrade the stock to BUY with a target price of INR 311/share. Also, order inflow (OI) in H1FY25, at INR 69bn, has been healthy, resulting in an order book (OB) of INR 190bn. We value the stock on an SoTP-basis at INR 311/share – EPC business is valued at 12x FY26E EPS and assets at INR 46bn – HAM assets at INR 26bn, BOT assets are at transaction value, adjusting for Ashoka’s obligation to Macquarie.

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.

Ashoka Buildcon - 05112024 - icici