10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Monday, November 21, 2011

Ashoka Buildcon Ltd:-Buy/sell/growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger

Scripscan:Ashoka Buildcon Ltd
Code: 533271

Story:ABL is one of the premier road developers in India, having a sizeable network of road assets across 18 projects (Rs83 bn of asset size) covering ~1,036 kms. 12 projects are already operational (~538 kms or 52% portfolio) generating CFO of Rs1.4 bn. With weighted average equity IRR (WIRR) of 16% & balance life of 22 years, With CoE at ~14%, ABL today boasts of one of the most lucrative BOT portfolios yielding 1.14X investors return expectation thereby creating sustainable shareholder value.”ABL, with over 15 years of experience has executed 59 road projects or 3,095 lkm. ABL’s unmatched developer track record, ideally complemented by its strong E&C capabilities has driven its transition from a small state level developer to a full scale national highway player. India’s massive road development program presented a solid growth opportunity for premier state road developers like ABL. The opportunity was lapped up by ABL's aggressive management & we saw ABL bagging 3 big NHAI projects (Belgaum-Dharwad, Sambhalpur–Baragarh& Dhankuni– Kharagpur) worth Rs40 bn over last 18 months. With more than 95% land acquisition complete for its Belgaum & Dhankuni project & with financial closure of just one project pending, we believe that ABL has crossed major execution hurdles. Though equity funding is not fully tied up (equity requirement at Rs 12.9bn, shortfall of Rs4.7 bn), we do not see it as a major challenge for ABL. Management is actively considering multiple avenues like private equity funding (raising USD100-150mn by diluting stake at SPVs) and re-leveraging operational SPV’s (could provide addition debt of Rs 2.25bn). With necessary clearances & debt funding already in place, we believe ABL is on the verge of a strong growth trajectory.”ABL has an order backlog of Rs 41.5bn or 4.1x FY11 revenues offering significant visibility. Moreover, 40% of the portfolio set to commence toll collection in FY12E is likely to drive operational profitability. EPS is set to grow at a CAGR of 23% over FY11-13E.Our SoTP value for ABL comes to Rs 337 per share with 53% value from BOT portfolio and 47% value from E&C business at Rs158/share (8X its FY13E E&C earnings), offering a 40% upside from the current market price.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner