The trend of decline in the stock market continues. Nifty fell by half a percent to around 23,861.60, while Sensex fell by 440 points to 78,341. In this declining environment, investors are looking for stocks where there is good earning potential. For this, ICICI Securities has kept a bullish view on a stock.
brokerage opinion
Domestic brokerage ICICI Securities has released a new report regarding construction sector company Ashoka Buildcon. In the report, not only has the stock’s rating been upgraded from REDUCE to BUY, but apart from this, the old target has been revised by 45 percent. At present this share is trading in the range of Rs 238 per share. The new target has been increased from Rs 215 to Rs 311. Let us tell you that the stock has seen a correction of 15% from its high. Also, the results of this company will also come next week on 12th November. In the month of October, the stock had made a low of Rs 211 and in September the low was Rs 226. In such a situation, downside risk is quite protected. The stock has given returns of 72% so far this year and about 80% in one year.
Why did you upgrade?
ICICI Securities said the company has decided to sell BOT assets to a Canadian pension fund. The company is expected to get Rs 2500 crore under this deal. A major chunk of this will go to Macquarie which had invested in this company in 2012. Now she will take exit. This deal was a concern for this stock for a long time. Now this concern has been resolved due to which the rating has been upgraded and the targets have also been increased.
If we look at the order book of Ashoka Buildcon, the company has received orders worth more than Rs 69 billion in the first half of FY 2025. The total order book of the company is more than Rs 19000 crore. Keeping all the factors in mind, the rating has been upgraded to BUY.
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.