ICICIdirect issued Buy call on Ashoka Buildcon (ABL). The stock broker recommends buying stock for target of Rs 166 against current market price of Rs 136 in its report

Commenting on the investment rationale, the stock broker said, "On the EPC front, with an order book of Rs 30.42 billion (1.5x order book to bill ratio on TTM), L-1 bids of Rs 10.30 billion in the T&D segment and new road awarding opportunities from H2FY15 onwards, we believe ABL's EPC revenues and earnings will grow at a CAGR of 19.7% and 15.2%, respectively, during FY14-FY16E. Considering the strong track record, well funded BOT road project portfolio and healthy order book, we remain positive on its long term prospects. With SBI Macquarie’s commitment of an additional Rs 6.5 billion, we believe ABL is likely to be a key beneficiary of the road awarding opportunities in H2FY15. Hence, we have valued ABL’s BOT projects at Rs 41a share, EPC business (net of debt) at Rs 70 a share (5x FY16 EV/EBITDA) and ACL at Rs 55 a share."

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