Views on Ashoka Buildcon 3QFY2014 results - Angel Broking

Views of Mr. Viral Shah (Sr. Research Analyst-Infrastructure, Angel Broking) on Ashoka Buildcon 3QFY2014 Result:

"For 3QFY2014, Ashoka Buildcon (ABL) reported a good set of numbers on the profitability front, which were significantly above our and consensus estimates. This was mainly due to higher-than-expected operating performance and lower-than-expected interest cost. ABL reported top-line decline of 2.9% yoy to Rs. 419cr in 3QFY2014 which was lower than our estimate by 10.6%. On the EBITDAM front, ABL's margins came in at 22.7%, a growth of 379bp on a yoy basis and were ahead our estimate of 18.9%. This was mainly due to decrease in operating expense (down 6% yoy). On the bottom line, ABL reported a PAT of Rs. 34cr (our estimate was Rs. 23cr) in 3QFY2014, indicating a growth of 165.6% yoy. This was mainly on back of better-than-expected operational performance. At CMP, the stock is trading at a P/E and P/BV of 8.0x and 0.8x FY2015E earnings respectively. We continue to maintain our Buy rating on the stock. However, our target price is currently under review. We shall revise our estimates post earnings conference call with the Management, which is scheduled on February 10, 2014 at 12.00pm."

Source : Equity Bulls

Keywords