Buy Ashoka Buildcon, target price Rs 147: Anand Rathi

Anand Rathi has buy call on Ashoka Buildcon with a target price of Rs 147. The current market price of Ashoka Buildcon Ltd. is Rs 102.2.

Time period given by analyst is one year when Ashoka Buildcon Ltd. price can reach defined target.

Ashoka Buildcon Ltd., incorporated in the year 1993, is a Mid Cap company (having a market cap of Rs 2861.97 Crore) operating in Infrastructure sector.

Ashoka Buildcon Ltd. key Products/Revenue Segments include Income From Construction Work, Ready Mix Concrete, Other Operating Revenue and Scrap for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 1304.71 Crore, down -.41 % from last quarter Total Income of Rs 1310.15 Crore and up 7.12 % from last year same quarter Total Income of Rs 1218.03 Crore. Company reported net profit after tax of Rs 79.14 Crore in latest quarter.

Investment Rationale
On accounting for the recent sharp surge in key commodities, the margin estimates have been pruned, but earnings, owing to the pruned capex and higher other income, are still ~1% better for FY22 and FY23 each. On the newly introduced FY24e, the stock (excl. investments) is available at 5.4x FY24e core construction EPS. Risk. Any notable cash-flow mismatch in project SPVs.

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 30-Sep-2021, while FIIs owned 2.8 per cent, DIIs 23.02 per cent.