Construction
Ashoka Buildcon Limited engages in the infrastructure development business in India. The company operates through Construction & Contract Related Activity; Built, Operate and Transfer (BOT); and Sale of Goods segments. It engages in the construction of infrastructure facilities on engineering, procurement, and construction basis, as well as built, operate, and transfer basis. In addition, the company undertakes various projects, such as highways, bridges, power projects, buildings, city gas distribution projects, water projects, and railways. Further, it sells ready mix concrete and real estate properties. Additionally, the company develops software for educational institutions; distributes gas; and provides consultancy services. Ashoka Buildcon Limited was founded in 1976 and is based in Nashik, India.
Summary of Ashoka Buildcon's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook and Major Points:
Industry Outlook:
Company Highlights:
Divestments & Monetization:
Order Book & Projects:
Financial Performance:
Debt & Liquidity:
Strategic Focus:
Key Risks: Execution delays, pending approvals for asset sales, and sector-wide competitive pressures.
Last updated: Feb 25
Question 1 (Jainam Jain, ICICI Securities): What is the order pipeline which we are seeing right now in NHAI biddings?
Answer: The NHAI, MoRTH, and NHIDCL have announced projects totaling 3,400 km (~Rs.1.11 lakh crores) in the pipeline. Recent quarters saw increased awarding activity, with 773 km awarded in November 2024 alone.
Question 2 (Jainam Jain, ICICI Securities): What would be the order inflow and revenue guidance for FY26? Also, margin guidance for FY26?
Answer: FY26 revenue growth is projected at 10"“15% YoY, with margins between 10"“11%. Order inflow guidance is Rs.12,000"“14,000 crores.
Question 3 (Vaibhav Shah, JM Financial): What is the revenue and EBITDA margin guidance for FY25?
Answer: FY25 revenue may fall short of FY24 by 2"“3%, with Q4 EBITDA margins likely around 8.5%, similar to Q3.
Question 4 (Vaibhav Shah, JM Financial): Are there one-offs in standalone Q3 results?
Answer: No one-offs were recorded in standalone Q3 results. Debt includes Rs.1,059 crores in working capital loans and Rs.300 crores in NCDs.
Question 5 (Vaibhav Shah, JM Financial): What is the equity investment guidance for new HAM projects in FY26/27?
Answer: Total pending equity commitment is Rs.380 crores, spread as Rs.175 crores in FY25, Rs.112 crores in FY26, and Rs.93 crores in FY27.
Question 6 (Bhavin Modi, Anand Rathi): How is the HAM/EPC order mix trending?
Answer: Focus remains on EPC across roads, railways, power, and buildings. PPP/HAM projects will be pursued selectively.
Question 7 (Bhavin Modi, Anand Rathi): What is the status of HAM asset monetization and Jaora-Nayagaon stake?
Answer: 70% NHAI approvals and 50% lender NOCs secured for 11 HAM assets; partial monetization (Rs.1,000 crores) expected by March 2025. Jaora-Nayagaon's 26% stake acquisition from Macquarie is pending MPRDC NOC.
Question 8 (Anupam Gupta, IIFL): What portion of the order book is under execution?
Answer: Rs.14,000 crores (~85%) of the Rs.16,457 crores order book is under execution, excluding two upcoming MSRDC/CIDCO projects.
Question 9 (Sushant Verma, Individual Investor): Does the recent stock decline reflect sector risks?
Answer: Management emphasized strong sector tailwinds from government infrastructure spending and diversification into railways, power, and water projects.
Question 10 (Vasudev, Nuvama): What is the debt reduction plan post asset sales?
Answer: Consolidated debt (Rs.6,847 crores) will reduce by ~Rs.4,000 crores by March 2025 via BOT/HAM monetization. Standalone debt (Rs.1,466 crores) will decline through receivables and project sales.
Question 11 (Sahil Jain, Seven Islands PMS): Will the company be net cash by FY26?
Answer: Post asset sales (Rs.4,800 crores inflow), debt repayment, and Macquarie settlement, net cash positivity is expected by FY26.
Question 12 (Amit Vora, Homeopathic Clinic): What projects remain post monetization?
Answer: Residual assets include one toll project (Jaora-Nayagaon), one annuity project (Chennai-ORR), and one HAM project.
Question 13 (Amit Vora, Homeopathic Clinic): Update on green hydrogen plans?
Answer: An MoU with Bihar government is in early stages; execution will be via an ABL subsidiary, leveraging solar expertise.
Question 14 (Bhavin Modi, Anand Rathi): Order inflow details for 9M FY25?
Answer: Order inflows till December 2024 totaled Rs.8,980 crores, with an additional Rs.3,000 crores expected by FY25-end.
Technicals: Bullish SharesGuru indicator.
Size: Market Cap wise it is among the top 20% companies of india.
Profitability: Recent profitability of 15% is a good sign.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Dividend: Stock hasn't been paying any dividend.
Smart Money: Smart money is losing interest in the stock.
Momentum: Stock has a weak negative price momentum.
Comprehensive comparison against sector averages
ASHOKA metrics compared to Construction
Category | ASHOKA | Construction |
---|---|---|
PE | 3.48 | 31.83 |
PS | 0.51 | 1.60 |
Growth | 13.3 % | 7.3 % |
ASHOKA vs Construction (2021 - 2025)
Analysis of Ashoka Buildcon's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Construction & Contract | 68.5% | 1.6 kCr |
BOT / Annuity Projects | 28.6% | 683.2 Cr |
Sale of Goods | 2.9% | 69.4 Cr |
Total | 2.4 kCr |
Understand Ashoka Buildcon ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Shobha Parakh | 13.55% |
Asha Ashok Katariya | 7.11% |
Hdfc Trustee Company Ltd. A/C Hdfc Balanced Advantage Fund | 6.46% |
Kotak Mahindra Trustee Co Ltd A/C Kotak Multicap Fund | 5.98% |
Ashok Motilal Katariya | 5.43% |
Ashok Motilal Katariya Huf | 5.18% |
Ashish Ashok Kataria | 4.88% |
Ashish Ashok Katariya (Huf) | 4.55% |
Astha Ashish Katariya | 4% |
Sbi Infrastructure Fund | 2.13% |
Satish Parakh | 2.1% |
Shweta Keyur Modi | 2.06% |
Satish Dhondulal Parakh (Huf) | 1.92% |
Ashoka Premises Pvt Ltd | 1.17% |
Ayush Ashish Kataria | 1.02% |
Aditya Satish Parakh | 0.92% |
Sanjay Prabhakar Londhe | 0.15% |
Snehal Manjeet Khatri | 0.15% |
Lemon Tree Trust - Trustee Satish Dhondulal Parakh | 0.09% |
Rohan Sanjay Londhe . | 0.05% |
Distribution across major stakeholders
Distribution across major institutional holders
Investor Care | |
---|---|
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 53.85 |
Financial Health | |
---|---|
Current Ratio | 0.98 |
Debt/Equity | 1.82 |
Valuation | |
---|---|
Market Cap | 5.32 kCr |
Price/Earnings (Trailing) | 3.46 |
Price/Sales (Trailing) | 0.5 |
EV/EBITDA | 1.73 |
Price/Free Cashflow | 10.55 |
MarketCap/EBT | 3.55 |
Fundamentals | |
---|---|
Revenue (TTM) | 10.59 kCr |
Rev. Growth (Yr) | -10.1% |
Rev. Growth (Qtr) | -4.06% |
Earnings (TTM) | 1.54 kCr |
Earnings Growth (Yr) | 502.36% |
Earnings Growth (Qtr) | 43.03% |
Profitability | |
---|---|
Operating Margin | 13.15% |
EBT Margin | 14.16% |
Return on Equity | 50.45% |
Return on Assets | 7.98% |
Free Cashflow Yield | 9.48% |