Emkay Global Financial Services has maintained 'Accumulate' on Ashoka Buildcon after the announcement of company's first quarter results. The stock broker fixed price target to Rs 195.

Commenting on the results, Emkay Global said, ''Ashoka Buildcon's revenue came in at Rs 6.3 billion flat growth YoY versus expectation of Rs 6.2 billion, lower than expected construction revenue was offset by higher than expected BOT revenue. EBITDA came in at Rs 1.84 billion +30.4% YoY versus expectation of Rs 1.45 billion due to recognition of Dhankuni Kharagpur project and EBITDA Margin came at 29% versus expectation of 23.4% due to higher contribution from high margin BOT business.

Adjusted net profit (ex-minority interest) reported loss of Rs 41.5 million versus expectation of Rs 121 million due to higher than expected capital cost (interest cost & depreciation) and tax outgo.''

Commenting on the investment rationale,  the stock broker said,  ''We have reduced our earnings estimates for FY16E by 20.03% on higher depreciation costs and higher tax rate. We have raised our target price to Rs195 a share on increase in stake in the Jaora Nayagoan road project. Maintain Accumulate.'' 

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