Share Review - Ashoka Buildcon (ABL) is expected to post robust growth of 52.5% y o y on the
consolidated revenue front to Rs.360.6 Crore on the back of under-construction
captive road BOT projects, which will drive its E&C revenue.
The E&C segment will continue to dominate the company’s revenue by contributing
Rs.268.4 Crore (74.4%), while the BOT segment's share is expected to be Rs.92.2 Crore.
EBITDAM is expected to come in at 21.5% (23.9%), registering a dip of
239bp y o y.
We are expecting 26.0% y o y growth at the earnings level to
Rs.21.0 Crore, led by revenue growth.
At the CMP of 205, the stock is trading at a discount to our FY2013E SOTP
target price of Rs.245/share. The company’s road BOT SPVs have been valued
on NPV basis (Rs.104/share). The construction segment has been valued at
5.0x EV/EBITDA basis (Rs.141/share). Hence, we maintain our Buy
recommendation on the stock.
Share Review by Angel Broking
consolidated revenue front to Rs.360.6 Crore on the back of under-construction
captive road BOT projects, which will drive its E&C revenue.
The E&C segment will continue to dominate the company’s revenue by contributing
Rs.268.4 Crore (74.4%), while the BOT segment's share is expected to be Rs.92.2 Crore.
EBITDAM is expected to come in at 21.5% (23.9%), registering a dip of
239bp y o y.
We are expecting 26.0% y o y growth at the earnings level to
Rs.21.0 Crore, led by revenue growth.
At the CMP of 205, the stock is trading at a discount to our FY2013E SOTP
target price of Rs.245/share. The company’s road BOT SPVs have been valued
on NPV basis (Rs.104/share). The construction segment has been valued at
5.0x EV/EBITDA basis (Rs.141/share). Hence, we maintain our Buy
recommendation on the stock.
Share Review by Angel Broking
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