Buy Ashoka Buildcon, target price Rs 182: ICICI Securities

ICICI Securities has buy call on with a target price of Rs 182. The current market price of Ashoka Buildcon is Rs 101.85. Time period given by analyst is one year when Ashoka Buildcon Ltd. price can reach defined target.

Ashoka Buildcon Ltd., incorporated in the year 1993, is a Mid Cap company (having a market cap of Rs 2739.86 Crore) operating in Infrastructure sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1780.22 Crore, up 33.74 % from last quarter Total Income of Rs 1331.12 Crore and up 10.63 % from last year same quarter Total Income of Rs 1609.12 Crore. Company reported net profit after tax of Rs 149.63 Crore in latest quarter.

Investment Rationale
As per ASBL management, the asset monetisation plans for BOT/HAM projects in ACL/ASBL are at an advanced stage and the company expects to receive a binding agreement by Q2FY22 once due diligence is complete. While ASBL is looking to divest up to 100% stake in these projects (including under-construction), any positive outcome on the same is a key trigger for the stock going ahead.

Promoter/FII Holdings
Promoters held 54.5 per cent stake in the company as of March 31, 2021, while FIIs held 4 per cent, DIIs 27.4 per cent and public and others 14.1 per cent.