Shares of a construction company climbed 3.60% to reach an intraday high of ₹ 109.40 apiece on the National Stock Exchange (NSE). This happened after it bagged orders worth ₹ 645.70 crores.
Ashoka Buildcon is engaged in the business of construction and infrastructure facilities on an EPC (Engineering, Procurement and Construction) and BOT (Build-Operate-Transfer)basis. It is also involved in the sale of ready-mix concrete.
The company informed in an exchange filing, that it has received notifications of award from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the development of distribution infrastructure under the Revamped Distribution Sector Scheme (RDSS) for loss reduction works at the four circles in the state of Maharashtra. The accepted contract value in aggregate for all the above projects is ₹ 645.70 crore, excluding GST.
With a market capitalization of ₹ 2,964 crores, Ashoka Buildcon is a small-cap company. It has a high return on equity of 41.46%. Its shares were trading at a price-to-earnings ratio (P/E) of 9.73, which is lower than the industry P/E of 30.22, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 54.48% stake in it, followed by retail investors with 24.48%, mutual funds with 18.64% and foreign institutions with a 2.40% stake in the company.
Ashoka Buildcon reported a 2.98 percent YoY (year-on-year) increase in revenue from operations at ₹ 1,935 crore in the April to June quarter. Its net profit for the quarter was down 46.66 percent YoY at ₹ 72 crore. The operating profit margins for the quarter contracted by 200 basis points on a yearly basis to 24 percent.
Written by Simran Bafna
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