Ashoka Buildcon witnessed a 2% increase in its share price on 26 November after receiving a Letter of Award (LOA) for a significant ₹1,391 crore project. At 9:21 AM, the stock was trading at ₹239.10, reflecting a ₹6.00 or 2.57% rise on the Bombay Stock Exchange (BSE).
Project details
The project was awarded by the National Highways Authority of India (NHAI) for developing a four-lane economic corridor. The corridor will stretch from Bowaichandi to the Guskara-Katwa Road Section (Km 89.814 to Km 133.000) of NH 116A. The project, located in West Bengal, will be executed under the Hybrid Annuity Mode (HAM) within 910 days, including the monsoon season.
Financial performance
Ashoka Buildcon reported a four-fold year-on-year increase in net profit for Q2FY25. The company’s profit rose to ₹462 crore compared to ₹106 crore during the same period last year. Additionally, revenue from operations showed a year-on-year growth of 15.5%, reaching ₹2,489 crore for Q2FY25.
Additional project wins
Recently, Ashoka Buildcon was declared the lowest bidder for a ₹312.13 crore project awarded by Maharashtra State Electricity Transmission Co. This contract involves the establishment of a 400/220 kV substation in Nandgaon Peth, Amravati, along with associated transmission lines, and is expected to be completed within 18 months.
Strategic acquisitions
In a strategic move, Ashoka Buildcon acquired an additional 34% stake in Ashoka Concessions (ACL) for ₹1,526 crore. This acquisition has made ACL a wholly-owned subsidiary of the company, further strengthening its portfolio.
Share price performance
Ashoka Buildcon shares have demonstrated remarkable growth, with the share price rising by 75% over the past year. On 6 September 2024, the stock reached a 52-week high of ₹284.75, while the 52-week low of ₹130.95 was recorded on 21 December 2023. Currently, the stock is trading 16.03% below its 52-week high but remains 82.59% above its 52-week low.
Positive momentum for investorsAshoka Buildcon’s consistent project wins and financial performance have created interest among those looking to invest in stocks. The ₹1,391 crore NHAI project win is expected to further solidify the company's position in the infrastructure sector. As the company continues to secure contracts and expand its operations, it presents opportunities for individuals considering share market investment.
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