Ashoka Buildcon Q1 Results Review - Traction In H2: IDBI Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Ashoka Buildcon Ltd. Q1FY25 operational numbers were weak due to volatility in Ebitda margin at 6% versus. 8-9% reported in the previous two quarters. The company sees that margin to improve in H2 FY25 as project with low margin to got completed in Q1 FY25. Due to weak inflow Ashoka Buildcon order book is at Rs 104 billion versus Rs169 billion YoY.

Order inflow stood at Rs 34 billion for Ashoka Buildcon and expects more inflow of Rs 100-120 billion for FY25.We value Ashoka Buildcon standalone business at 10 times PER FY26E. There is upside risk to our taraget price-

on asset monetization, more than book value
order inflow uptick, resulting in revenue increase more than our estimate.

We retain our rating to Buy with target price of Rs 283. Asset Monetization of 11 hybrid annuity model/five built-operate-transfer/ one Annuity project is in final stages of closing the SPA.

Though, this was earlier expected in Q1 FY25. Closure of this reduce debt from current level of Rs 14 billion.

Click on the attachment to read the full report:

IDBI Capital Ashoka Buildcon Q1FY25 Results Review.pdf

Read Document

Also Read: Patanjali Foods - Remodelling As A Formidable Competitor To Its FMCG Peers; Systematix Initiates With A Buy

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.