Nuvama has reiterated its “Reduce” rating on Ashoka Buildcon, with a target price of ₹294, citing a cautious outlook despite recent corporate actions. The stock is currently trading at ₹310.92.

Key Highlights

  1. Asset Sale: Ashoka Buildcon has sold its entire stake in 11 HAM (Hybrid Annuity Model) assets for an aggregate consideration of ₹2,320 crore.
  2. Simplified Structure: This transaction, combined with an earlier deal to sell stakes in five BOT (Build-Operate-Transfer) toll projects, will simplify the company’s corporate structure and help reduce leverage.
  3. Improved Valuations: Healthy order accretion supports increasing the target P/E multiple from 11x to 13x by Q3FY27E, signaling improved profitability expectations.

While these steps are aimed at improving financial stability and corporate efficiency, the brokerage maintains a cautious view, citing limited near-term triggers for significant upside.

Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.

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