Check Before You Invest : Ashoka Buildcon Ltd

Q: Which industry/sub-sector does Ashoka Buildcon Ltd belong to?

Ashoka Buildcon Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q: Is Ashoka Buildcon Ltd a good quality company?

Ashoka Buildcon Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Ashoka Buildcon Ltd undervalued or overvalued?

Ashoka Buildcon Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 1.36, Historic Median: 6.05. Price to Book, Current: 0.61, Historic Median: 1.57. Price to Sales, Current: 0.47, Historic Median: 0.52. EV to EBITDA, Current: 1.69, Historic Median: 2.89

Q: Is Ashoka Buildcon Ltd a good buy now?

Ashoka Buildcon Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd revenue growth is 2.4% for FY-2025, which is below its 5-year CAGR of 14.63%, indicating slower growth.

Q: Gross Profit margin of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.4% for FY-2025, which is above its 5-year median of 13.9%, indicating increasing margins.

Q: Operating Profit Margin of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.09% for FY-2025, which is in line with its 5-year median of 29.09% indicating stable margins.

Q: Net Profit Margin of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Net Profit Margin is 17.27% for FY-2025, is above its 5-year median of 5.48%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 18.4, Historic Median: 13.9. Operating Profit Margin (%), Current: 29.09, Historic Median: 29.09. Net Profit Margin (%), Current: 17.27, Historic Median: 5.48

Q: Return on Asset of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Return on Asset is 8.85%, which is above its 5-year historical median of 2.89%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Return on capital employed is 41.38% for FY-2025, which is above its 5-year historical median of 29.37%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Ashoka Buildcon Ltd

Snapshot

Q.1 Which industry/sub-sector does Ashoka Buildcon Ltd belong to?

Ashoka Buildcon Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Ashoka Buildcon Ltd a good quality company?

Ashoka Buildcon Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Ashoka Buildcon Ltd undervalued or overvalued?

Ashoka Buildcon Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	1.36	6.05
Price to Book	0.61	1.57
Price to Sales	0.47	0.52
EV to EBITDA	1.69	2.89

Q.4 Is Ashoka Buildcon Ltd a good buy now?

Ashoka Buildcon Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd revenue growth is 2.4% for FY-2025, which is below its 5-year CAGR of 14.63%, indicating slower growth.

Q.2 Gross Profit margin of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.4% for FY-2025, which is above its 5-year median of 13.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.09% for FY-2025, which is in line with its 5-year median of 29.09% indicating stable margins.

Q.4 Net Profit Margin of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Net Profit Margin is 17.27% for FY-2025, is above its 5-year median of 5.48%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	18.4	13.9
Operating Profit Margin (%)	29.09	29.09
Net Profit Margin (%)	17.27	5.48

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Return on Asset is 8.85%, which is above its 5-year historical median of 2.89%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Return on capital employed is 41.38% for FY-2025, which is above its 5-year historical median of 29.37%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Return on equity is 56.51% for FY-2025, which is above its 5-year historical median of 52.92%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Cash conversion cycle is 5 days, below its 5-year historical median of 7 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.51	0.5
ROE (%)	56.51	52.92
ROCE (%)	41.38	29.37
Cash Conversion Cycle	5 days	7 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Debt-to-Equity ratio is 0.50, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Ashoka Buildcon Ltd?

Ashoka Buildcon Ltd Debt to cash flow from operations is 1.17, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ashoka Buildcon Ltd?

Q.1 Promoter shareholding and pledge status of Ashoka Buildcon Ltd?

Promoters hold 54.48% of the Ashoka Buildcon Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ashoka Buildcon Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ashoka Buildcon Ltd vs industry peers?

Ashoka Buildcon Ltd revenue CAGR is 14.63%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	2.4	0
Gross Profit Growth (%)	60.6	16.3
Operating Profit Growth (%)	29.7	13.9
Net Profit Growth (%)	232.8	20.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.51	0.62
ROE (%)	56.51	6.32
ROCE (%)	41.38	10.58
Cash Conversion Cycle (days)	4.62	51

Valuation & price assessment

Q.1 Stock return of Ashoka Buildcon Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	4%	9.9%	16.6%	-23.5%

Q.2 Valuation ratios of Ashoka Buildcon Ltd vs historical?

The current P/E ratio of 1.36 is lower than its historical median of 6.05, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	1.36	6.05	21.52
Price to Book	0.61	1.57	1.74
Price to Sales	0.47	0.52	1.51
EV to EBITDA	1.69	2.89	11.49

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Check Before You Invest : Ashoka Buildcon Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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