Buy Ashoka Buildcon, target price Rs 302: HDFC Securities
HDFC Securities has a buy call on Ashoka Buildcon with a target price of Rs 302. The current market price of Ashoka Buildcon is Rs 237.85. Ashoka Buildcon, incorporated in 1993, is a Mid Cap company with a market cap of Rs 6663.25 crore, operating in the infrastructure sector.
Ashoka Buildcon's key products/revenue segments include Income From Construction Work, Ready Mix Concrete, Other Operating Revenue, Scrap and Land for the year ending 31-Mar-2023.
Investment Rationale
Ashoka Buildcon has guided FY25 revenue to be flat on a YoY basis. On the HAM portfolio, the company has already invested Rs 10.7 billion; the balance equity requirement in its existing NHAI HAM assets is Rs 1 billion as of Sep 24, which will be infused in H2FY25 itself. Given the stable OB, improving visibility on asset monetisation, and margin expansions on the back of new order execution, HDFC Securities maintains a BUY. However, the brokerage has increased the SOTP to Rs 302/sh (11x Dec-26E EPS roll forward) while factoring in a higher valuation for HAM assets (1.4x P/BV).
Financials For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 2528.99 Crore, up 1.38 % from last quarter Total Income of Rs 2494.65 Crore and up 15.20 % from last year same quarter Total Income of Rs 2195.33 Crore. Company has reported net profit after tax of Rs 462.30 Crore in latest quarter.
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