Pressure continues in the stock market. Lower than expected numbers in the results season or rising inflation, selling by FIIs, increase in bond yields, weakening rupee are all such factors due to which the market is falling. In such a situation, brokerages are expressing their opinion on the companies whose Q2 results have come.
What is the new target?
There is one such stock on which domestic brokerage firm ICICI Securities has given buying advice. The name of this construction company is Ashoka Buildcon. At present this share is in the range of Rs 230. The stock has fallen by about 20 percent from its high. Now the brokerage has predicted a rise of 35 percent from the current level of the stock i.e. a target of Rs 311 per share has been given.
why like share
ICICI Securities believes that the debt on the company is high because of the high need for working capital. By March 2025, it may decrease by up to Rs 5000 crore. EBITDA margin is expected to be double digit in the next few quarters. Revenue growth is expected to be 10-15 percent.
Financials
If we talk about the September quarter results, Ashoka Buildcon’s results have been weak on an annual basis. Talking about the company’s performance so far in FY25, the revenue stood at Rs 3360 crore with an annual growth of 7 percent. EBITDA stood at Rs 305 crore with a jump of 14 percent. Operating profit margin has increased from 8.5 percent to 9.1 percent. However, net profit declined by -12 percent to Rs 77 crore. There is an order backlog of Rs 11104 crore. On the other hand, the company has estimated 15-20% earnings growth for FY26 in its guidance. In the coming time, big orders are expected for infra projects which will support sentiment and growth.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.