The shares of the leading highway developer gained up to 9 percent after the company has emerged as lowest bidder for the two projects of Maharashtra State Road Development Corporation Ltd worth Rs 2,152.72 crore.
With a market capitalization of Rs 5,474 crore, the shares of Ashoka Buildcon Ltd were trading at Rs 194.60 per share, increasing around 6.16 percent as compared to the previous closing price of Rs 183.30 apiece.
As per the exchange filing, Ashoka Buildcon Ltd has emerged as lowest bidder for the two projects of Maharashtra State Road Development Corporation Ltd for construction of major bridge worth Rs 2,152.72 crore. The project should be executed in 37 months in calendar years.
Analyzing a company’s financial performance, revenue grew by 24 percent from Rs 2,448 crore in Q4FY23 to Rs 3,052 crore in Q4FY24, during the same period company’s net profit grew by 664 percent from a loss Rs 45 crore to a profit of 254 crore.
Recently, the business has won a letter of award for the project Six laning of Aurangabad to Bihar-Jharkhand Border (Chordaha), Section of NH-2 (PKG -1), in Bihar under Bharatmala on EPC basis for a total consideration of Rs. 520 crore.
As on March 31, 2024, the company has a order book of more than Rs 11,000 crore, Ashoka Buildcon has constructed 14,000 Km highway and 30,000 villages illuminated through Power T&D projects. The company has marquee client base which includes NHAI, Rsil Vikas Nigam Ltd, Ircon International Ltd and many more.
The company has given a return 34.13 percent in six months and a multibagger return of 140 percent in a year.year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.40 lakh in a year.
Ashoka Buildcon Limited is an Indian infrastructure development business. The company is in the business of building and maintaining roads, as well as providing land support services such as toll road operation. The company also constructs buildings, electricity lines, trains, and municipal gas distribution.
Written by:- Abhishek Singh
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