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Ashoka Buildcon stock rises 5% after ₹2,309.99 crore project success

Stocks
2 min Read Oct 14, 2024
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Ashoka Buildcon’s shares rose 5% on October 14 after receiving a Letter of Acceptance for two major infrastructure projects from Maharashtra State Road Development Corporation Ltd. (MSRDCL). These developments strengthen Ashoka Buildcon's position as a key player in the construction sector, signalling potential opportunities for those looking to invest in stocks.

New project wins boost investor confidence

Ashoka Buildcon's stock was trading at ₹265.65 at 9:34 am on the Bombay Stock Exchange (BSE), a rise of ₹13.85 or 5.50%. The increase in share price followed the company's confirmation that it had secured contracts for major engineering, procurement, and construction (EPC) works, totalling ₹310 crore.

The first project involves the construction of a significant bridge across Bankot Creek between Kolmandla, Raigad, and Veshvi, located along the Revas Reddi Coastal Highway No. 5 in Ratnagiri District, Maharashtra. The project is expected to be completed within 36 months, including the monsoon season.

Securing large-scale infrastructure projects

In addition to the Bankot Creek bridge, MSRDCL awarded Ashoka Buildcon another project worth ₹1,999.99 crore. This project includes constructing major bridges across Jaigad Creek and Kundalika Creek and enhancing the infrastructure along the Revas Reddi Coastal Highway in Maharashtra’s Ratnagiri District. The project timeline is also set at 36 months, including monsoon periods.

Previous project wins in October

Earlier this month, Ashoka Buildcon also secured a ₹1,673.24 crore project from the City and Industrial Development Corporation of Maharashtra Limited (CIDCO). This was followed by the company being declared the lowest bidder for a ₹918 crore project from Brihanmumbai Municipal Corporation (BMC). Furthermore, the Mumbai Metropolitan Region Development Authority (MMRDA) awarded the company a ₹474.10 crore project for designing and constructing an elevated road in Kalyan.

Key takeaways

  • Ashoka Buildcon's share price rose by 5% after winning two major projects worth ₹310 crore and ₹1,999.99 crore.

  • The company continues to secure high-value projects, signalling strength in its operations.

  • The company’s stock reached a 52-week high of ₹284.75 on 6 September 2024, with a low of ₹120.90 on 26 October 2023.

Ashoka Buildcon's consistent project wins highlight its potential as a solid option for those who want to invest in stocks related to India's infrastructure growth.