Ashoka Buildcon - Execution slips - Outlook remains promising - Emkay

Reco: BUY
CMP: Rs 208
Target Price: Rs 350

- EBITDA at Rs841 mn +17%yoy v/s exp. Rs 956mn. E&C EBITDA at Rs 314mn + 31%yoy (E&C margins @ 13% +245bps yoy), BOT EBITDA at Rs 526mn + 9%yoy, (BOT margins @75.7% expansion 157bps yoy

- APAT at Rs240 mn +42% yoy v/s exp. of Rs247 mn led by lower EBITDA contribution & higher contribution from the associates & minority interest during the quarter

- Revenues at Rs 3.1bn +6.5%yoy v/s exp. Rs 4.05bn led by poor E&C execution. E&C revenues at Rs 2.4bn v/s exp Rs 3.2bn led by heavy rains in east impacting execution in WB & Orissa

- Cut earnings by 9% in FY14E, moderate E&C execution led by slip in Angul-Cuttack project. Roll over fair value targets to FY14E. Maintain Buy with a Target price of Rs 350

Source : Equity Bulls

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