The shares of the prominent infrastructure company gained up to 6 percent in today’s trading session after the company’s subsidiary bagged a work order from the Motor Vehicles Department, Maharashtra, for Rs 1,387.2 crore.
With a market capitalization of Rs 6,316.27 crore, the shares of Ashoka Buildcon Ltd were trading at Rs 225.00 per share, increasing around 3 percent as compared to the previous closing price of Rs 218.90 apiece.
The shares of the Ashoka Buildcon Ltd have seen positive movement after receiving letters of intent worth Rs 1,387.2 crore from the Motor Vehicles Department, Maharashtra, for various circles (Nagpur, Mumbai, Pune, Marathwada, Konkan, and Western Maharashtra). The project involves the design, implementation, integration, operation, and maintenance of an intelligent traffic management system on various stretches in these circles for a period of 10 years.
Looking forward to the company’s financial performance, revenue decreased by 11 percent from Rs 3,052 crore in Q4FY24 to Rs 2,694 crore in Q4FY25. Further, during the same time frame, net profit increased by 77 percent from Rs 254 crore to Rs 452 crore.
Ashoka Buildcon has over 45 years of construction experience, a ₹14,905+ crore order book, and a 10,000+ strong workforce. It has built 14,000 km of highways and illuminated 30,000 villages. With strong CRISIL ratings, it shows 5-year revenue and EBITDA CAGRs of 17% and 16%, and a 0.51x debt-equity ratio.
Ashoka Buildcon serves marquee clients including NHAI, MoRTH, MSRDC, MMRDA, Rail Vikas Nigam, MAHAVITARAN, MAHATRANSCO, and various state infrastructure bodies like TNRDC, KSHIP, MPRDC, and UPEDA. Its diverse client base reflects strong trust across national and state infrastructure agencies in highways, power, and urban development projects.
Ashoka Buildcon remains optimistic but faces execution challenges due to delays in land acquisition and forest clearances. Only 40% of projects have commenced, with 60% deferred to Q3, impacting revenue visibility. Consequently, the company has lowered its revenue growth guidance for FY26, citing these regulatory and logistical hurdles.
Ashoka Buildcon Limited is engaged in the construction and maintenance of roads and supporting services to land support operations of toll roads and others. The Company is also engaged in the construction of buildings, power, railways, and city gas distribution.
Written by Abhishek Singh
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