Motilal Oswal’s research report on Ashoka Buildcon
ASBL’s standalone revenue grew 62% YoY to INR10.7b in 3QFY19, beating our estimate of INR8.6b. Sales were supported by better-than-estimated execution of projects in hand. Construction revenue grow 66% YoY supported by strong growth in the power T&D segment (+94% YoY to INR2.5b). EBIDTA grew 99% YoY to INR1.5b, ahead of our estimate of INR1.0b, with margin improvement of 265bp to 14.0% from 11.3% in the year-ago period. Reported profit stood at INR622m (+32% YoY) below our estimate of INR700m. During the quarter, ASBL provided for INR398m towards its exposure to GVR Infra (total exposure at INR806m); adjusting for this PAT stood at INR895m (+91% YoY).
We maintain our Buy rating with SOTP-based TP of INR175.
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 Feb 1, 2019 02:07 pm