HDFC Securities Assigns "Buy" On Small Cap Infra Stock, Claims 77% Robust Return

HDFC securities has assigned a "Buy" call on the stock of Ashoka Buildcon Ltd (ASBL), an infrastructure sector small-cap stock. The brokerage assigned a target price of Rs 131/share on the stock, implying a potential upside in the share price of 77%. It operates in The stock's market capitalisation is Rs 2,084.37 crore. Below are the key details about the stock:

Ashoka Buildcon's Share Price and Returns

The current share price of ASBL is Rs 74.25/share on NSE, down 7.01% as compared to its previous close of Rs 79.85/share.

The stock has fallen 4.5% in the past 1 week and 15.91% in the past 1 month, respectively. However, it has gained 1.57% in the past 3 months. It has fallen 17.77% in the past 1 year. It declined 27.67% in the past 3 years. In the past 5 years, it declined a maximum of 53.22%.

The stock hits its 52 week high on 18 February 2022 at Rs 98.60/share and 52 week low on 25 May 2022 at Rs 69/share, respectively.

 

HDFC Securities suggests "Buy" for a target price of Rs 131/share

According to the brokerage, Ashoka Buildcon (ASBL) reported revenue/EBITDA/APAT of INR 15.6/1.2/0.7bn, beating/(missing) our estimates by 11.3/(8.9)/(11.5)%. With approvals pending from only a few stakeholders, all the asset monetisation deals are expected to be completed by H1FY24. On the back of strong order inflows, the FYTD23 order book (OB) stands at INR 191.5bn (~3.2x FY23E revenue). The standalone gross/net debt decreased marginally to INR 8.5/5.8bn as of Dec'22 vs. INR 8.7/6.5bn as of Sep'22. The balance equity requirement for HAM assets as of Dec'22 stands at INR 2bn, of which INR 0.4bn would be funded in Q4FY23 and INR 0.9/0.4bn in FY24/25. "ASBL has guided for a capex of INR 2.5bn for the next five quarters. It also guided FY23 revenue growth of 30% YoY. We cut our estimates to factor in weaker margins and maintain BUY, with a TP of INR 131/sh (9x Dec-24E EPS rollover)," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision