Multibagger Stock: Brokerage firm HDFC Securities has advised investors to buy Ashok Buildcon shares with a potential gain of 52.4% with a target period of 1 year. Let us tell you that Ashoka Buildcon is a leading construction and highway developer in India. Ashoka Buildcon is an integrated EPC, BOT and HAM player in the country with a portfolio of 39 major PPP projects. The company has worked in more than 20 states across India, completing projects for the central and state governments.
Ashok Buildcon (ASBL) revenues Rs 9.2bn (+5%/-9% YoY/QoQ), EBITDA Rs 1.05bn (-19% YoY, -12% QoQ), while EBITDA margin of 11.5% (-244/-265) bps YoY/QoQ). The company furthermore reported a PAT of Rs 0.9 bn. The company’s performance was largely slow due to monsoon. Order Book (OB) including recently won orders stands at Rs 120 bn. The company has reduced its FY22 revenue growth guidance to 20% from 25%. The SBI Macquarie deal was earlier renegotiated in October-21 for consideration of a minimum of Rs 11bn and a deadline of December-21 for completion.
According to HDFC Securities, we maintain our TP as well as EPS at Rs 157 (9x Sep-23E EPS) in view of higher share in EPC orders vs EPC orders vs mix and cut in guidance. HAM. This may reduce the EBITDA margin as HAM projects have higher margins.”
“We have retained ‘Buy’ and reduced our EPS to TP at Rs 157 (9x Sep-23E EPS),” the brokerage firm said.
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