Please refer to important disclosures at the end of this report
Ashoka Buildcon Ltd. (ABL) is one of the largest highway developers in the
country with an impressive portfolio of over 31 PPP (Public Private Partnership)
projects. ABL’s order book has shown improvement from `3,565cr in Mar 2014
to `6,220cr in Dec 2016 and by March end company expects to open the fiscal
with an order book of `7000crore plus. The company expects to grow b
25-30% next fiscal with some of the projects have started and on the back of the
strong order book. EPC business was not much impacted by demonetization as
ABL pays its subcontractors via cheques. ABL has won the project on BOT model
in Ratnagiri (Maharashtra) and the work is expected to start in Q1FY18.
Management expects equity IRR of ~20%. The management expects margins to
be maintained at 12-12.5% range. For ABL things are returning to normal, on
the EPC execution front, post demonetization as the management does not see
Q4 execution to be impacted much. ABL is currently in a sweet spot, with strong
balance sheet, robust order book and BOT projects reporting decent growth in
toll collection. The company has been maintaining a healthy dividend payout o
32.17% (Div Yield: 0.82%). Hence Buy.
CMP `186
Stock Info
Bloomberg Code
Shareholding Pattern (%)
Promoters 56.7
MF / Banks / Indian Fls 24.1
FII / NRIs / OCBs 7.7
Indian Public / Others 11.6
Abs. (%) 3m 1yr 3yr
Sensex 10.9 19.7 34.8
Ashoka Buildcon 20.4 2.7 167.6
52 Week High / Low 200/111
Avg. Daily Volume 73,965
Market Cap (
cr) 3,483
BSE Sensex 29,398
Nifty 9,085
Face Value (
Reuters Code ABDL.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
shoka Buildcon
Others | Infrastructure
March 17, 2017
Ashoka Buildcon | Infrastructure
March 17, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Ashoka Buildcon
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15