Ashoka Buildcon - Q1FY21 Result Update - ICICI Securities

Ashoka Buildcon's (ABL) performance was a mixed bag in Q1FY21. Revenues de-grew ~35% YoY to Rs. 572.4 crore on account of weaker-than-expected execution during the quarter owing to Covid-19 led challenges such amid lockdown and labour shortage. Reported EBITDA margin was up 180 bps YoY to 14.3%, mainly on account of release of contingencies on account of project completion. RPAT grew 11.9% YoY to Rs. 68.1 crore on account of higher other income (driven by insurance claim and restructuring of equipment loans) and higher reported EBITDA.

Valuation & Outlook

We are impressed by ABL's continued improvement in leverage at standalone levels. However, the SBI-Macquarie stake exit remains the key overhang on the company. We believe asset monetisation will be key for rerating of EPC business multiples. We conservatively build in construction revenue growth at 4% CAGR to Rs. 4,248 crore in FY20-22E. We maintain HOLD re on the stock with an SoTP-based target price of Rs. 70.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_AshokaBuildcon_Q1FY21.pdf

Shares of ASHOKA BUILDCON LTD. was last trading in BSE at Rs.70.9 as compared to the previous close of Rs. 64.6. The total number of shares traded during the day was 1163389 in over 10183 trades.

The stock hit an intraday high of Rs. 74 and intraday low of 65.7. The net turnover during the day was Rs. 81268351.

Source : Equity Bulls

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