Ashoka Buildcon - Q1FY2014 Result Review - Angel Broking

For 1QFY2014, Ashoka Buildcon (ABL) reported a poor set of numbers. The poor result was mainly on the back of slowdown in execution, lower-than-expected operating performance and higher interest cost, leading to disappointment at the earnings level. ABL reported a flat top-line growth of 0.6% yoy to Rs. 469cr in 1QFY2014 which was lower than our estimate by 7.7%. On the EBITDAM front, ABL's margins came in at 20.1% (22.0%), lower than our estimate of 22%, owing to lower-than-expected revenue growth and high input costs. On the bottom-line front, ABL's PAT declined by 26.0% yoy to Rs. 30cr (Rs. 41cr) and was slightly below our estimate of Rs. 32cr. This was mainly on account of lower-than-expected revenue growth and higher interest expenses.

At CMP, the stock is trading at a P/E and P/BV of 5.0x and 0.5x FY2015E earnings respectively. The target price and rating on the stock is currently under review. We shall revise our estimates post earnings conference call with the Management, which is scheduled on August 8, 2013 at 11.30am.

Source : Equity Bulls

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