Ashoka Buildcon Q1 Results Review - Pressure On Margin Until Q4: IDBI Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Ashoka Buildcon Ltd.'s Q1 FY24 (standalone) profit after tax came lower than our / consensus estimates by 85%/ 80%. Lower net profit is led by lower execution (revenue up 4% only) and weak Ebitda margin of 5%. Margin was impacted from one time provision and adjusted Ebitda margin stood at 8% (in-line with estimate). However, due to expectation of lower execution at +15% in FY24E versus earlier of 20-25% and uptick in margin to double digit only in FY25E, we have lowered EPS estimate by 27%/8% for FY24E/25E. And target price is revised to Rs 93 (earlier target price Rs 99) and downgrade our rating one notch to 'Hold' given negligible upside. Ashoka Buildcon has multiple stock catalyst and will be key for stock performance- uptick in margin to double digit, execution pick up which is single digit in Q1 and conclusion of asset sale – National Investment and Infrastructure Fund and 11 hybrid annuity model..Click on the attachment to read the full report:.ONGC Q1 Results Review - Outlook Intact Amid Steady Performance: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ashoka Buildcon Q1 Results Review - Pressure On Margin Until Q4: IDBI Capital

Margin was impacted from one time provision and adjusted Ebitda margin stood at 8% (in-line with estimate).

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