Ashoka Buildcon - Result Update - ICICI Securities

Ashoka Buildcon's (ABL) revenues de-grew 4% YoY to Rs. 1255 crore on account of Covid-19 impact. Reported EBITDA margin was up 440 bps YoY to 18.2%, mainly on account of provision write back of Rs. 100 crore-largely led by Kharar project and power transmission verticals. RPAT grew 56.3% YoY to Rs. 164.2 crore due to lower tax rate and higher reported EBITDA.

Valuation & Outlook

SBI-Macquarie stake exit remains the key overhang on the company. The monetisation could hit a roadblock in the near term given the overall economic challenges. Moreover, we expect ABL's execution to be impacted by Covid-19 impact. We conservatively build in construction revenue growth at 4% CAGR to Rs. 4,248 crore in FY20-22E. We reinstate our ratings (earlier suspended). We have a HOLD recommendation on the stock with an SoTP-based target price of Rs. 60/share.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_AshokaBuildcon_Q4FY20.pdf

Shares of ASHOKA BUILDCON LTD. was last trading in BSE at Rs.59 as compared to the previous close of Rs. 56.4. The total number of shares traded during the day was 886665 in over 6128 trades.

The stock hit an intraday high of Rs. 64 and intraday low of 56. The net turnover during the day was Rs. 52272056.

Source : Equity Bulls

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