Ashoka Buildcon Q4 Review - Asset Monetisation Remains An Overhang: Prabhudas Lilladher
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Prabhudas Lilladher Report
Ashoka Buildcon Ltd.’s Q4 performance was healthy with revenue and margin coming above our estimates.
Amid the second wave of Covid-19, execution was impacted as labour availability and operational efficiency fell to ~70% levels.
However, with easing of restrictions and declining cases, operational efficiency bounced back to ~90-95% levels.
On the back of healthy order inflows, massive bid pipeline, execution picking up with sharp bounce-back in labour availability, management expects limited impact of second wave on full-year FY22 revenues and accordingly retained their earlier guidance of 20- 25% YoY growth in construction revenues in FY22.
Delays in conclusion of SBI Macquarie stake sale deal (now expected by Q2 /Q3 FY22) continues to remain as a major overhang on the stock.
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