Hold Ashoka Buildcon; target of Rs 120: ICICI Direct
ICICI Direct’s research report on Ashoka Buildcon
Ashoka Buildcon’s (ABL) revenues de-grew 7.7% YoY to Rs 983.6 crore on account of the impact of prolonged monsoons in certain regions. EBITDA margins contracted 132 bps YoY to 12.6%. RPAT grew 37.6% YoY to Rs 85.5 crore (our estimate: Rs 97.0 crore) on account of a lower tax rate (24.2% in Q3FY20 vs. 31.2% in Q3FY19) and higher other income at Rs 36.9 crore in Q3FY20 vs. Rs 25.4 crore in Q3FY19.
We maintain our SoTP-based target price of Rs 120/share but assign a HOLD rating post the ~12% run up in the stock price since our last update.
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