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Last Updated : Jul 13, 2018 04:58 PM IST | Source: Moneycontrol.com

Buy Ashoka Buildcon; target of Rs 328: Edelweiss

Edelweiss bullish on Ashoka Buildcon has recommended buy rating on the stock with a target price of Rs 328 in its research report dated July 11, 2018.

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Edelweiss' research report on Ashoka Buildcon


We recently interacted with Ashoka Buildcon’s (ABL) management to gain insights into the company’s future plans. Management is targeting order intake of ~INR50-60bn in FY19 and has guided for 40% top line growth each in FY19 and FY20, backed by a robust order book of ~INR119bn (>5x FY18 EPC revenues). It stated that ABL is in advanced stage of tying up funds for five HAM projects and expects to achieve financial closure (FC) for them over the next quarter. In our view, a lean balance sheet (debt:equity at 0.1x) will enable ABL to benefit from likely moderation in competition for HAM projects.


Outlook


Likely pick up in execution and robust traffic growth reinforce our bullish stance on ABL. Maintain ‘BUY’ with SOTP‐based target price of INR328.


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 Jul 13, 2018 04:58 pm
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