Saturday, September 25, 2010

>Ashoka Buildcon Limited: IPO NOTE

Ashoka Buildcon Ltd (ABL) is a Nashik based EPC contractor having pan India presence. Company owns 23 projects on BOT (Built Operate Transfer) basis covering 1100 kms and 6 foot
over bridges which are operational. Other business vertical of ABL would include sale of ready mix concrete for road construction and civil works. ABL can also provide toll collection services to third party BOT projects. ABL is also capable of providing EPC solutions for power sub stations.

In last 4 years ABL's EPC revenues have increased by a CAGR of 48%, Toll revenues have surged by 47%. Revenues from ready mix concrete business grew by CAGR of 33% in last 4 years. EBITDA profits of ABL saw a rise of 48% while profits after taxes witnessed growth of 130% in previous 4 financial years.

Investment Rationale:
Proven track record of order execution and O&M services across road industry ABL has a proven track record of constructing 2390 kms of road projects across the country. ABL is also capable of providing operational & maintenance (O&M) services as well as toll collection services to the existing toll projects for its customers.

Strong base of operational BOT projects
ABL currently has 23 projects on BOT basis, off which 11 road projects spanning across 1100 kms are operational. ABL also has 6 foot over bridges as a part of its BOT projects located in
Mumbai. BOT projects are valued at Rs.6.9 bn in which ABL has 93% stake worth Rs.6.5 bn.

To read the full report: ASHOKA BUILDICON