Infra Stock engaged in the business of providing construction and infrastructure facilities for roads, railways, power, supporting services, and many more jumped 4 percent in the day’s trade upon receiving work order worth Rs. 918 Crores from Brihanmumbai Municipal Corporation under Mumbai Municipal Corporation.
Price Action
With a market capitalization of Rs. 6,984 Crores, the shares of Ashoka Buildcon Limited were trading at Rs. 250.55 per equity share, up 3 percent from its previous day’s close price of Rs. 244.25.
What Happened
Ashoka Buildcon Limited has been declared as the L1 Bidder for a tender submitted to Brihanmumbai Municipal Corporation for the Construction of Flyover Arm1 Arm-2 at T Junction on Sion Panvel Highway Maharashtra Nagar in M/E Ward for a consideration of Rs. 918 Crores, and it is to be executed within 30 Months.
About the Company
Ashoka Buildcon Limited is engaged in the business of providing construction and infrastructure facilities for roads, railways, power, supporting services, and many more on an Engineering, Procurement, and Construction (EPC) and build-operate-transfer (BOT) basis.
It has a strong customer base, with marquee clients such as NHAI, the Ministry of Road Transport and Highways, Ircon International, Rail Vikas Nigam, NHIDCL, the Public Works Department, and many others.
Ashoka Buildcon Limited’s Operational segment breakup consists of Power T&D 42.7 percent, Road EPC 35.7 percent, Road HAM 9 percent, Railways 6.7 percent, and Building EPC 6 percent. As of Q1FY25, Ashoka Buildcon Limited has a strong order book of Rs. 10,356 Crores.
Financials & Ratios
Its Revenue from operations grew by 27.40 percent YoY from Rs. 1,935 Crores in Q1FY24 to Rs. 2,465 Crores in Q1FY25, accompanied by profits of Rs. 72 Crores to Rs. 158 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 22.7 percent and a return on capital employed (ROCE) of 27.1 percent. It has maintained a high debt-to-equity ratio of 2.45.
Written by: Bharath K.S
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