Ashoka Buildcon
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Ashoka Buildcon is currently navigating a challenging environment characterized by muted execution and margin compression, primarily due to front-loaded costs and a sluggish domestic road awarding landscape. Management has proactively adjusted FY27 guidance, indicating a back-ended recovery, while emphasizing a strong competitive position supported by a diversified order book and a healthy bid pipeline. The company's strategic focus on deleveraging through asset monetization and pivoting towards higher-growth segments like railways and power transmission is expected to enhance long-term growth prospects. Vista's financial outlook reflects an anticipated acceleration in revenue growth beyond historical levels, with stable margins projected. However, the current valuation suggests a cautious investor sentiment, with a strong sell recommendation reflecting expected downside. Over the next 12-24 months, key opportunities include leveraging government infrastructure spending and international project wins, while watchpoints include execution risks related to asset monetization and persistent inflationary pressures. Overall, Ashoka Buildcon's outlook remains cautiously optimistic, contingent on effective execution and financial discipline
Why We Like This Stock
- Strong competitive position with a diversified order book and healthy bid pipeline
- Strategic focus on deleveraging and pivoting towards higher-growth segments like railways and power T&D
- Government infrastructure spending plans provide significant revenue visibility and growth opportunities
Things To Watch Out For
- Muted execution and margin compression due to front-loaded costs and a sluggish domestic road awarding environment
- Execution risks related to the deferral of asset sales and slow receivable realization
- Persistent inflationary pressures and supply chain uncertainties may impact profitability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,798 | 10,037 | 7,520 | 7,050 | 7,938 |
| Profit Before Tax (Cr.) | 763 | 1,538 | 988 | 684 | 799 |
| PBT Margin | 7.8% | 15.3% | 1313.8% | 9.7% | 10.1% |
| Net Profit (Cr.) | 543 | 1,254 | 1,160 | 637 | 727 |
| Earnings Per Share | 18.7 | 43.3 | 40.4 | 22.2 | 25.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| HDFC Securities | ▲ Buy | 183 | 13-Aug-2026 |
| ICICI Securities | ▲ Buy | 180 | 25-May-2026 |
| Prabhudas Liladhar | ▲ Buy | 150 | 13-Aug-2026 |
Company Overview
Show Company Profile
Ashoka Buildcon Limited engages in the construction business in India. The company operates through Construction & Contract Related Activity; Built, Operate and Transfer (BOT)/ Annuity Projects; and Sale of Goods segments. The company engages in the construction of infrastructure facilities on engineering, procurement, and construction basis, as well as built, operate, and transfer basis. It also sells ready mix concrete and real estate properties. It undertakes various projects, such as highways, bridges, power, buildings, solar, water, airports, and railways. Ashoka Buildcon Limited was founded in 1976 and is based in Nashik, India.