Buy Ashoka Buildcon, target Rs 195: ICICI Direct

ICICI Direct has a buy call on Ashoka Buildcon Ltd. with a target price of Rs 195.0 . The current market price of Ashoka Buildcon Ltd. is Rs 148.0 Time period given by the brokerage is 12-18 Months when Ashoka Buildcon Ltd. price can reach defined target. Ashoka Buildcon Ltd., incorporated in the year 1993, is a midcap company with a market cap of Rs 4150.49 crore.

Investment rationale by ICICI Direct

Ashoka Buildcon (ABL) made an announcement of bonus shares on May 29, 2018. The ratio was one bonus share for every two existing equity shares i.e. 1:2. The record date for the same is July 13, 2018 while the exdate for the same is today i.e. July 12, 2018. Consequently, ABL’s share price, as per yesterday's closing price, has dropped to Rs 159/share from Rs 239/share. Hence, now our target price also stands revised to Rs 195/share post bonus issue of equity shares.