Order inflow stood at Rs 90 billion for Ashoka Buildcon in 9MFY25 and expects more inflow of Rs 10-20 billion for Q4 FY25. We value Ashoka Buildcon standalone business at 10x PER FY27E.
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Ashoka Buildcon Ltd.’s Q3 FY25 operational numbers were subdued due to weak execution and slowdown in government awarding and land acquisition issues. Ebitda margin stood at 9.1% and Ashoka Buildcon sees that margin to improve in FY26E as project with low margin will complete in FY25.
Order inflow stood at Rs 90 billion for Ashoka Buildcon in 9MFY25 and expects more inflow of Rs 10-20 billion for Q4 FY25. We value Ashoka Buildcon standalone business at 10x PER FY27E. There is upside risk to our target price-
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on asset monetization, more than book value,
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order inflow uptick, resulting in revenue increase more than our estimate.
We have changed our rating to Hold with target price of Rs 260. Asset Monetization of 11 hybrid annuity model/five built-operate-transfer/one Annuity project is in final stages of closing the SPA. Though, this was earlier expected in Q3 FY25. Closure of this will reduce debt from current level of Rs 14 billion.
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. Read more on Research Reports by NDTV Profit.Looking ahead to FY26E, Ashoka Buildcon has provided a revenue growth guidance of 15%, with Ebitda margins ranging between 10-11%, says the brokerage. Read MoreResearch Reports
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