Ashoka Buildcon Share Price: In today’s post, we will tell you about Ashoka Buildcon Target Price and this company which is a well-known name in the infrastructure sector. This company has done very big infrastructure projects in India, such as building highways, building bridges, building power transmission lines, building railway lines, etc.
Ashoka Buildcon Limited Company Overview
The founder of this company is Mr. Ashok M. Katariya this company started in 1976 and today its name is among the well-known companies. Ashoka Buildcon brought its Initial Public Offering (IPO) in 2010.
This company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) and it has increased its infrastructure development a lot.
| Company Name | Ashoka Buildcon Ltd. |
| Founded | 1976 |
| Headquarters | Nashik |
| Industry | Infrastructure Development |
| MD | Satish Parakh |
| Stock Exchange Listing | NSE & BSE |
| Official Website | ashokabuildcon.com |
In this, their main work is to construct highway roads and maintain the roads. They have many other projects like (EPC) Engineering, Procurement, Construction, (BOT) Build-operate-Transfer, and (HAM) Hybrid Annunity Model, Power Transmission and Distribution. Some of these projects are-
BOT (Build Operate Transfer)
Build (Construction)
In this Ashoka Buildcon takes responsibility for any private company and government company and then completes the design and construction work of its infrastructure.
To do construction the company takes money from its different investors and also takes loans from the bank.
To do construction work in the public sector the company has to do the work as per their terms and conditions and specifications.
Operate
After construction, the company has to operate and maintain it for some time which is already written in the Terms and Conditions, for which private companies give you permission so that you can generate revenue from that thing and can withdraw your loan and investor’s money and can earn some profit which includes taking fees, taking tolls, taking service charges etc.
Transfer
After the completion of the time, the company transfers its ownership to the private company or government company giving the project.
Before transferring, private companies or government companies check whether the company has done the work according to the terms and conditions and specifications or not.
If Ashoka Buildcon has done the work properly then they easily get many projects in the future. After the ownership is transferred, the public sector gets its right to that thing and gives the facility to operate and maintain it.
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Benefits of the BOT Model
Risk Sharing
It has more financial and operational risk, but this risk is divided between the public and private sector within the project. Most of the risk in the construction and operation phase is borne by the private sector.
Private Sector gets Expertise
Because of the public sector, the expertise of private companies is very good for doing work in construction, technology and project management and they also get the experience of completing that project in an innovative way.
Project Completion on Time
Any private company tries to complete its work on time, due to which it becomes famous in the entire market and in the coming time it gets many projects from public sector and private sector.
Challenges of the BOT Model
High Initial Cost
In the private sector, the company should have a lot of capital in advance for the project and if it is a big project then the company faces many challenges there, along with this the cost is also very high. Therefore, it is important to have expertise in your infrastructure.
Revenue Risk
The company does not have much revenue in infrastructure projects, in this, the company does not know how much their profit is going to be. Due to this most of the private infrastructure companies closed down.
Complex Negotiations
Bot agreement is complex negotiation and time-consuming, due to which most of the talks between the two parties are about terms and conditions and specifications. In this, the company has to talk about Revenue Sharing and Project Completion timing.
Regulatory and Legal Risk
The company faces many challenges regarding the changing policies of the government and regulations and legality in the infrastructure field. Due to which the company loses many projects. Only by keeping all these things in mind, the company is able to take on big projects.
Ashoka Buildcon Ltd Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | ₹6,449.05 Cr. |
| ROE | 12.33% |
| ROCE | 16.63% |
| P/E | 14.93 |
| P/B | 1.66 |
| Industry P/E | 31.86 |
| Debt to Equity | 1.96 |
| Div. Yield | 0% |
| Book Value | ₹138.55 |
| Face Value | ₹5 |
| EPS (TTM) | ₹15.38 |
| 52 Week High | ₹274.60 |
| 52 Week Low | ₹130.85 |
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Ashoka Buildcon Ltd Financials
Income Statement
| (INR) | 2024 | Y/Y Change |
|---|---|---|
| Revenue | 97.98B | 20.96% |
| Operating expense | 12.81B | 22.08% |
| Net income | 5.03B | 72.04% |
| Net profit margin | 5.13 | 42.11% |
| Earnings per share | 8.05 | -29.82% |
| EBITDA | 22.49B | 14.52% |
| Effective tax rate | 40.09% | — |
Balance Sheet
| (INR) | 2024 | Y/Y Change |
|---|---|---|
| Cash and short-term investments | 9.17B | 34.79% |
| Total assets | 191.24B | 11.54% |
| Total liabilities | 167.00B | 9.51% |
| Total equity | 24.25B | — |
| Shares outstanding | 280.72M | — |
| Price to book | 2.94 | — |
| Return on assets | 6.50% | — |
| Return on capital | 15.43% | — |
Cash Flow
| (INR) | 2024 | Y/Y Change |
|---|---|---|
| Net income | 5.03B | +72.04% |
| Cash from operations | 7.49B | +52.13% |
| Cash from investing | 2.34B | +175.19% |
| Cash from financing | -4.07B | -30.93% |
| Net change in cash | 5.75B | +543.55% |
| Free cash flow | 5.34B | +660.47% |
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Ashoka Buildcon Share Price Target 2024 to 2030
| Year | Share Price Target |
|---|---|
| Ashoka Buildcon Target Price 2024 | ₹301 |
| Ashoka Buildcon Target Price 2025 | ₹475 |
| Ashoka Buildcon Target Price 2026 | ₹544 |
| Ashoka Buildcon Target Price 2027 | ₹622 |
| Ashoka Buildcon Target Price 2028 | ₹711 |
| Ashoka Buildcon Target Price 2029 | ₹814 |
| Ashoka Buildcon Target Price 2030 | ₹932 |
Ashoka Buildcon Limited Shareholding Pattern
- Retail & Other: 19.78%
- Promoters: 54.48%
- Foreign Institution: 7.96%
- Mutual Funds: 17.44%
- Other Domestic Institution: 0.35%
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Ashoka Buildcon Ltd Competitors/Peer Companies
- L&T
- HFCL
- Techno Electric
- Waaree Renewables
- Acme Solar Holdings
- Sterling
- Va Tech Wabag
- Reliance Infrastructure
- Engineers India
- ISGEC Heavy Engineering
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Financial Health and Growth Prospects
Revenue Growth
As we all know infrastructure companies have a very high financial risk, due to which most companies are unable to complete some projects and sink, but a company like Ashoka Buildcon has shown a growth of 24% in a year.
This company has a very good name in the market and due to this they have many infrastructure projects of government and private companies. Very good growth can be seen in this company in the coming time.
Their profit till now is 5.3 billion, which is a very good thing for the company which shows their strong profitability and cost management in the market.
Debt Management
Ashoka Buildcon takes loans to complete their projects but their debt is stable. Right now their debt is Rs 5,450 crores.
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Major Recent Projects and Contracts Won
Kolshet-Kalher and Gaimukh-Payegaon Bridges
Ashoka Buildcon emerged as the lowest bidder for the construction of Kolshet-Kalher Bridge and Gaimukh-Payegaon Bridge in Thane, Maharashtra. These bridges will connect projects like Thane Coastal Road and Virar-Alibag Multi-Modal Corridor.
NH-2 Project in Bihar
The company bagged a Rs 520 crore contract from NHAI to convert a section of NH-2 from Aurangabad to Bihar-Jharkhand boundary into a six-lane highway. The project is part of the Bharatmala initiative and will be carried out as per engineering, procurement and construction (EPC).
Thane Creek Bridge Projects
Ashoka Buildcon was awarded the project to build the Kolshet-Kalher and Gaimukh-Payegaon bridges, which include a 120-metre-long navigation span over Vasai Creek connecting key areas of Thane.
Conclusion
Today we have given you complete information about Ashoka Buildcon Share Price Target, due to which you can make a lot of profit in the coming time, for this it is very important for you to take advice from your financial advisor because this company can make a lot of profit in the coming time.
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FAQs
Is Ashoka Buildcon a good buy?
Yes.
Is Ashoka Buildcon debt free?
No, it is not completely debt-free.
Who is Ashoka Buildcon owner?
Mr. Ashok Katariya.
Disclaimer: The information given in this blog is for educational purposes only, and the targets mentioned in it are given as suggestions by market analysts. Therefore, before investing your money in any company, it is mandatory to get complete information about the company and consult your financial advisor.
