Why Ashoka Buildcon shares climbed 5% on Nov 26: check details here

Ashoka Buildcon bagged a letter of award (LOA) from National Highways Authority of India (NHAI) for a West Bengal economic corridor project

Shares of Ashoka Buildcon surged 5 per cent to hit an intraday high of Rs 244.80 a piece on Tuesday after the civil construction firm received a letter of award (LOA) from National Highways Authority of India (NHAI) for a West Bengal economic corridor project. 

 

The project is worth Rs1,391 crore and involves development of 4 lane Economic Corridor from Bowaichandi to Guskara-Katwa Road Section Km 89.814 to Km 133.000 of NH 116A (Package-3) in the state of West Bengal under Hybrid Annuity Mode, the company said in an exchange filing on Monday. 

 

The company said that the project will be completed in 910 days which will include the monsoon season. 

 

 

Ashoka Buildcon Ltd specialises in construction and infrastructure development, operating on an EPC (Engineering, Procurement, and Construction) and BOT (Build, Operate, Transfer) basis. The company is also involved in producing and selling Ready Mix Concrete (RMC). As a Fortune India 500 company, Ashoka Buildcon is a leading player in India's highway development sector. 

Ashoka Buildcon Q2FY25 results

The Highway developer reported a 334.27 per cent year-on-year (YoY) surge in net profit, reaching Rs 462.5 crore for the second quarter ending September 30, 2024. This compares to Rs 106.5 crore in the same period last year, according to the company’s regulatory filing. 

 

Revenue from operations rose 15.5 per cent to Rs 2,489 crore, up from Rs 2,154.3 crore in the corresponding quarter of the previous fiscal year. At the operating level, Ebitda soared 65.8 per cent to Rs 905.3 crore in Q2 FY25, compared to Rs 546 crore in Q2 FY24. The Ebitda margin improved significantly to 36.4 per cent from 25.3 per cent in the same quarter last year.

Ashoka Buildcon share price history

The company’s stock performance has outperformed the market year to date as it has risen 77 per cent, while gaining 81 per cent in the last one year. In comparison BSE Sensex has surged 11 per cent year to date and 21.6 per cent in a year. 

  Ashoka Buildcon has a total market capitalisation of Rs 5,536.18 crore. Its shares are trading at a price to earnings multiple of 15.75 times and at an earning per share of Rs 15.39. 

 

At 9:42 AM; the stock of the company was trading 4.11 per cent higher at Rs 242.90 a piece. By comparison, the BSE Sensex was up 0.12 per cent at 80,207.45 level.