Construction Stock to BUY: Domestic analyst a brokerage firm has released a new report on construction sector giant Ashoka Buildcon Ltd (NSE: ASHOKA). The rating for this stock has been upgraded from REDUCE to BUY.
Apart from this, the old target has been revised by 45%. Currently, this stock is trading in the range of Rs 243.
The company’s result will also come next week on November 12. Apart from this, this stock has also been corrected by 15% from its high.
Ashoka Buildcon’s Rating Was Upgraded
The brokerage firm said the company has decided to sell BOT assets to a Canadian pension fund. Under this deal, the company is expected to get Rs 2500 crore.
A large chunk of this will go to Macquarie, which had invested in this company in 2012. Now it will take an exit.
This deal was a concern for this stock for a long time. Now this concern has been removed due to which the rating has been upgraded and the targets have also been increased.
Ashoka Buildcon Share Price Target
Ashoka Buildcon Ltd’s order book is strong. In the first half of FY25, the company received orders worth more than 69 billion, which is more than Rs 19000 crore.
Considering all these factors, the rating has been upgraded to BUY. The target has been upgraded by 45%, and the new target has been increased from Rs 215 to Rs 311.
Ashoka Buildcon Share Price History
The new target for Ashoka Buildcon Ltd is Rs 311. Currently, this stock is trading in the range of Rs 240.
This goal is 30 percent more than the current one. On September 6, the stock reached a life high of Rs 285.
It has also corrected 15% from there. The stock made a low of Rs 211 in October and a low of Rs 226 in September.
In this case, the risk of losing money is very well protected. In the first quarter of this year, the company has returned 75.31% (YTD), and 74.36% in a year.
Quick Fact
| Company name | Ashoka Buildcon |
|---|---|
| Tuesday rating | BUY |
| Previous rating | REDUCE |
| Upgrade reason | BOT assets sale |
| BOT assets deal value | ₹2500 crore |
| BOT asset buyer | Canadian pension fund |
| Macquarie investment | 2012 |
| Expected exit | Macquarie |
| Order book (FY25 H1) | ₹19000 crore+ |
| New possible target price | ₹311 |
| Previous target price | ₹215 |
| Upgrade in target | 45% |
| Current price range | ₹240 |
| Growth (YTD) | 75.31% |
| Grows in a year | 74.36% |
| Potential growth | 30% |
| Life high price | ₹285 (Sept 6) |
| Price correction | 15% |
| Yearly return | 88% |
| Q1 return | 72% |
| Upcoming results date | Nov 12 |
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