On January 7, 2025, Ashoka Buildcon's shares saw a notable rise of over 4%, hitting ₹290 per share, following the announcement of a significant concession agreement with the National Highways Authority.
The company's subsidiary, Ashoka Bowaichandi Guskara Road Private Ltd, secured the deal to build a four-lane economic corridor in West Bengal. This positive movement in the share market investment reflects the company's growing influence.
Project details and significance
This ambitious ₹1,391 crore project involves developing the Bowaichandi to Guskara-Katwa road section on NH 116A. Set to be completed in 910 days, including the monsoon period, the project will follow the hybrid annuity model (HAM). A special purpose entity (SPV) has been created to ensure the effective execution of the agreement. For investors interested in carrying out share market investments, this project is a major indicator of Ashoka Buildcon's future growth prospects.
This project is a productive initiative enhancing infrastructure and connectivity in West Bengal, further cementing Ashoka Buildcon's growing presence in the region.
Recent achievements and financial performance
The West Bengal project adds to Ashoka Buildcon's recent successes. In November 2024, the company secured a ₹1,055 crore contract with Bangalore International Airport. This deal focused on constructing elevated taxiways, pavement systems, and drainage infrastructure at Kempegowda International Airport in Bengaluru.
On the financial front, Ashoka Buildcon delivered strong results for Q2 FY25, posting a remarkable 334.27% year-on-year growth in net profit, reaching ₹462.5 crore. Revenue from operations rose 15.5% to ₹2,489 crore, while EBITDA jumped 65.8% to ₹905.3 crore, pushing margins to 36.4%. This performance could encourage more share market investment in the company’s stock.
Stock performance and outlook
Ashoka Buildcon's stock has been on a strong upward trajectory, climbing over 25% in the past three months, far outperforming the Nifty 50 index, which dropped 4% during the same period. The stock hit a 52-week high of ₹319 per share on December 31, 2024. The solid rebound on January 7 of 4% in the share prices of Ashoka Buildcon stock has generated new confidence in investors. This recovery came after the previous day's drop, where it went down by 7.88% at ₹281.25.
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