Ashoka Buildcon Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Ashoka Buildcon's (ABL) topline de-grew 2.6% YoY to | 683.7 crore (our estimate: | 865.2 crore) despite a strong order book (OB). As on Q1FY19, the company's OB was at | 10783 crore EBITDA margins contracted 148 bps YoY to 11.9% (our expectation: 12.5%) due to higher employee expenses (4.5% as percentage of revenue in Q1FY19 vs. 3.7% of revenue in Q1FY18) PAT grew 3.1% YoY to | 63.9 crore (our estimate: | 75.0 crore)...

We maintain BUY on ASBL with a bonus adjusted TP of Rs 225/share. ASBL delivered weak 1QFY19 performance with revenue 3.9% lower than our estimates. Construction revenue came in at Rs 6.3bn, sale of goods at Rs 0.4bn and BOT at Rs 0.1bn. Exceptional settlement Rs 0.1bn in Chittorgarh Bypass has been adjusted from revenue. Blended EBITDA margins were lower at 10.4% (-267bps YoY, -107bps QoQ) on account of a larger share of power segment (Rs 1.3bn in 1QFY19) in which ASBL generates lower margins.

ICICI Securities Ltd | Retail Equity Research Ashoka Buildcon (ABL) made an announcement of bonus shares on May 29, 2018. The ratio was one bonus share for every two existing equity shares i.e. 1:2. The record date for the same is July 13, 2018 while the exdate for the same is today i.e. July 12, 2018. Consequently, ABL's share price, as per yesterday's closing price, has dropped to | 159/share from | 239/share. Hence, now our target price also stands revised to...

Ashoka Buildcon's (ABL) revenues grew strongly by 15.1% YoY to | 702.3 crore (our expectation: | 675.5 crore) possibly on account of strong execution during the quarter EBITDA margins expanded 110 bps YoY to 11.5% (our expectation: 12.7%) due to lower raw material & construction expenses (81.6% of revenue in Q4FY18 vs. 82.4% of revenue in Q4FY17) PAT grew robustly strongly 51.1% YoY to | 105.4 crore (our estimate: | 68.0 crore) due to lower depreciation and interest expenses...

ICICI Securities Ltd | Retail Equity Research Ashoka Buildcon's (ABL) revenue grew strongly by 25.7% YoY to | 658.9 crore (our expectation: | 614.1 crore) possibly on account of strong execution during the quarter EBITDA margins expanded 30 bps YoY to 12.1% (our expectation:...

We maintain BUY on ASBL ASBL reported strong execution led recovery with Rev/EBIDTA/PAT growing 25.2/28.2/21.6% YoY. EPC segment contributed 93.3% to Rev (Rs 6,148mn) and grew 26.4% YoY. Sales from goods grew to Rs 354mn (4.8% YoY)/BOT grew ~44.1% YoY to Rs 87mn.

We maintain BUY on ASBL with an increased TP of Rs 274/sh. ASBLs 2QFY18 net revenue declined ~14.5% YoY to Rs 3.8bn, owing to (1) Land compensation-related agitation on Eastern Peripheral project, and (2) GST negotiation with T&D; segment supplier chain. This resulted in Rs 2bn of execution miss. With these issues settling, execution has picked from Sep-2017.

Ashoka Buildcon's (ABL) revenues de-grew 14.5% YoY to | 378.7 crore (our expectation: | 719.7 crore) due to muted execution owing to work stoppage at Eastern-Peripheral expressway for 50 days and slow moving power orderbook due to GST issues EBITDA margins contracted 240 bps YoY to 13.4% (our expectation: 13.0%) mainly due to higher employee expenses (6.5% of revenue in Q2FY18 vs. 4.7% of revenue in Q2FY17) PAT declined 27.9% YoY to | 32.7 crore (our estimate: | 59.0 crore)...

Maintain BUY with SOTP-based TP of Rs 235/sh. Much needed execution push in Eastern peripheral, Kharar Ludhiana and JNPT road projects (cumulative Rs 3bn revenue contribution) led to 1QFY18 revenue beat of 23.4%. This along with 77bps EBIDTA margins expansion (to 13.5%), lower depreciation (-8.2% YoY) and taxes, resulted in 101% YoY APAT growth.

Ashoka Buildcon (ABL) reported Q1FY18 results on a standalone basis. Hence, they were not comparable with our estimates Revenues grew 54.3% YoY to | 722.8 crore mainly on account of strong execution during the quarter EBITDA margins contracted 23 bps YoY to 13.5% mainly due to...