Ashoka Buildcon emerges as L1 bidder for 2 NHAI projects in Bihar; stock jumps 7.7 per cent

Ashoka Buildcon Limited has emerged as the lowest bidder (L1) for the two projects undertaken by National Highways Authority of India (NHAI) in the state of Bihar.

The aggregate quoted value of both the projects is Rs 1,390 crore. The first project includes four-laning of Arrah to Pararia section of NH-319 (Old NH-30) from km 0+000 to km 54+530 (design chainage) in the state of Bihar under Bharatmala Pariyojana phase -1 on EPC mode (package-I).

Meanwhile, the second project includes four-laning of Pararia to Mohania section of NH-319 (old NH-30) from km 54+530 to km 115+330 (design chainage) in the state of Bihar under Bharatmala Pariyojana phase-I on EPC mode (package II).

As of June 30, 2020, the company’s order book stood at Rs 8,617 crore, which is, 2.1x its revenue for FY20. Its order book comprises of road HAM-54.3 per cent, road EPC-26 per cent, power T&D-8.9 per cent, railways-10.1 per cent and CGD-0.7 per cent.

NHAI has recently announced to set a target of awarding 4,500 km of national highways in FY21. The company is optimistic that this opportunity will create future visibility towards enhancing its order book.

On Tuesday, the stock of Ashoka Buildcon opened at Rs 70.40 on BSE and surged 7.7 per cent at 10.01 am to Rs 73.45 from its previous close of Rs 68.20.