NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Outlook and Strategic Initiatives:
Ashoka Buildcon Ltd. has revised its FY26 revenue guidance downward, signalling softer demand visibility than previously expected. While the management had earlier indicated a flat revenue performance for FY26 during its Q2 FY26 earnings call, it now expects a year‑on‑year decline of 8–10%.
Nirmal Bang, however, has taken a slightly more optimistic view, baking in a 7.3% decline in revenue, citing Ashoka Buildcon's strong execution capabilities and its ability to navigate short‑term operational challenges.
On the profitability front, the brokerage expects Ebitda margins to remain healthy at around 9.0% in FY26, with a modest improvement to nearly 9.5% in FY27, supported by cost control and operating efficiencies.
On the monetisation front, the company expects to sell four HAM assets by March 2026 for over Rs 750 crore and two additional assets by June 2026 for ~Rs 400 crore, which is likely to reduce the standalone debt to Rs 200–300 crore.
The brokerage notes that while near‑term revenue growth has softened, margin stability and debt reduction initiatives provide comfort from a medium‑term standpoint.
Views and Valuations:
Nirmal Bang projecst a revenue, Ebitda and PAT CAGR of 4%, 14% and 38%, respectively, over FY25–FY27E. The stock is currently trading at 1yr-forward of 11x FY27E EPS.
The brokerage maintains a Hold rating on the stock and value it at 9.3x Dec-27E EPS and 0.7x P/B for BOT/HAM projects to arrive at a target price of Rs 152 (from Rs 186).
Nirmal Bang revises target price downward by 18% factoring in the management's guidance of an 8–10% revenue decline in FY26 amid a challenging sector environment.
Risks and Challenges:
- Short-term execution pressures due to delays caused by slow awarding and land acquisition issues.
- Possible delays in monetization affecting financial flexibility.
- Competitive bidding environment and BOT greenfield project uncertainties.
Click on the attachment to read the full report:
Also Read: India-US Trade Agreement To Give New Momentum To Economy: BJP president
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Comprehensive Budget 2026 coverage, LIVE TV analysis, Stock Market and Industry reactions, Income Tax changes and Latest News on NDTV Profit.
