Ashoka Buildcon Ltd. share price target

We maintain BUY on ASBL with an increased TP of Rs 262/sh. ASBL achieved life high quarterly revenue with Construction/Sale of goods/BOT revenues at Rs 10.2/0.4/0.1bn (+66/+7/-10% YoY). ASBL, as a matter of prudence, recorded an exceptional provision of Rs 0.4bn against dues from GVR worth Rs 0.6bn).

31 January 2019 revenue grew 62% YoY to INR10.7b in 3QFY19, beating our estimate of INR8.6b. Sales were supported by better-than-estimated execution of projects in hand. Construction revenue grow 66% YoY supported by strong growth in the power T&D; segment (+94% YoY to INR2.5b). EBIDTA grew 99% YoY to INR1.5b, ahead of our estimate of INR1.0b, with margin improvement of 265bp to 14.0% from 11.3% in the year-ago period. Reported profit stood at INR622m (+32% YoY) below our estimate of INR700m. During the quarter, ASBL provided for INR398m towards its exposure to GVR Infra (total exposure at INR806m); adjusting for this PAT stood at INR895m (+91% YoY). ASBLs order backlog as at Dec18 stood at a healthy INR95b (including HAM EPC of INR42b). This provides revenue visibility of 3.

We maintain BUY on ASBL with increased TP of Rs 223/share (vs. Rs 210/sh earlier). Following a weak 1QFY19, ABL came back strongly with a 102% revenue growth YoY at Rs 7.6bn (42% ahead of estimates). Construction revenue came in at Rs 7.1bn, sale of goods at Rs 0.4bn and BOT at Rs 0.1bn. Blended EBITDA margins: 13.6% (+155bps YoY, +314bps QoQ, +150bps beat).

PAT grew strongly by 90.0% YoY to | 62.1 crore (our estimate: | 53.7 crore) mainly led by strong growth in revenues GVR Infra Project (GVR), one of the customers and joint venture partner for certain road annuity project, has been admitted for insolvency petition by National Company Law Tribunal (NCLT). ABL has receivables worth | 82 crore from GVR. The company has...

EPC business on track to deliver 30% growth for FY19: Ashoka Buildcon's engineering procurement construction (EPC) execution has seen a muted start in FY19 (revenue decline of 3% YoY in 1QFY19), given the early onset of monsoons and lower availability of projects for execution. Ashoka Buildcon (ABL); however, is maintaining its 30% revenue growth target for FY19, given the progress it has witnessed on the new Hybrid Annuity Mode (HAM) projects (EPC order book of INR42b) on the financial closure front, and on momentum pick-up in the existing EPC order book. EPC execution is expected to pick up momentum from 2HFY19 as...

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:...