Buy Ashoka Buildcon, target price Rs 160: Motilal Oswal

Motilal Oswal has buy call on with a target price of Rs 160. The current market price of Ashoka Buildcon Ltd. is Rs 103.6. Time period given by analyst is one year when Ashoka Buildcon price can reach defined target.

Ashoka Buildcon Ltd., incorporated in the year 1993, is a Mid Cap company (having a market cap of Rs 2894.26 Crore) operating in Infrastructure sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1310.15 Crore, down -26.41 % from last quarter Total Income of Rs 1780.22 Crore and up 65.32 % from last year same quarter Total Income of Rs 792.50 Crore. Company reported net profit after tax of Rs 75.69 Crore in latest quarter.

Investment Rationale
A strong order book and continuous improvement in the Balance Sheet augurs well for ASBL. Its TP of INR160/share is based on the SoTP methodology. It values the: a) EPC business at 5x Mar’23E EPS, and b) BOT business on an NPV basis.

Promoter/FII Holdings
Promoters held 54.5 per cent stake in the company as of June 30, 2021, while FIIs held 3.5 per cent, DIIs 24.3 per cent and public and others 17.7 per cent.