Ashoka Buildcon (BUY, 53% upside) - AMBIT

Ashoka Buildcon will report its 1QFY14 results today. We expect construction business revenue to decline materially on a QoQ basis as the company booked a majority of BOT projects' construction revenue in 4QFY13. We expect a 600 bps QoQ expansion in consolidated EBITDA margin (22.7% in 1QFY14 against 16.7% in 4QFY13) as the share of high margin BOT revenue is expected to increase. The interest and depreciation cost is also likely to move up on account of the booking of interest and depreciation on the assets getting operational in 4Q. Thus, despite the expansion in EBITDA margin, PBT will decline both a YoY and a QoQ basis.

Source : Equity Bulls

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