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IDBI Capital Report
Ashoka Buildcon Ltd. Q1FY25 operational numbers were weak due to volatility in Ebitda margin at 6% versus. 8-9% reported in the previous two quarters. The company sees that margin to improve in H2 FY25 as project with low margin to got completed in Q1 FY25. Due to weak inflow Ashoka Buildcon order book is at Rs 104 billion versus Rs169 billion YoY.
Order inflow stood at Rs 34 billion for Ashoka Buildcon and expects more inflow of Rs 100-120 billion for FY25.We value Ashoka Buildcon standalone business at 10 times PER FY26E. There is upside risk to our taraget 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 retain our rating to Buy with target price of Rs 283. 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 Q1 FY25. Closure of this reduce debt from current level of Rs 14 billion.
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