Low PE High ROE stock: This small-cap construction company receives a project worth Rs 264.87 crore!

Today, shares of the company saw a spurt in volume by more than  1.66 times on BSE.

Ashoka Buildcon Limited informs the exchanges (BSE & NSE) that the company has received notification of Award (NoA) from South Bihar Power Distribution Company Limited (SBPDCL) for the project viz. ‘Development of Distribution Infrastructure at Electric Supply Circle PESU (East) & Electric Supply Circle PESU (West) of Bihar under the Revamped Reforms-based and Results-linked, Distribution Sector Scheme’ (“Project”). The accepted contract value for the project is Rs 264.87 crore.  

Recently, Ashoka Buildcon along-with North Haven India Infrastructure Fund, an India focused infrastructure fund managed by Morgan Stanley has entered into a Share Purchase Agreement with Mahanagar Gas to acquire 100 per cent of the share capital of Unison Enviro Pvt Ltd (UEPL), a subsidiary of Ashoka Builcon Ltd for a consideration of Rs 531 crore.  

Today, shares of Ashoka Builcon Ltd surged 4.31 per cent to Rs 79.39 per share from its previous closing of Rs 76.11. The stock has a 52-week high of Rs 95.70 and a 52-week low of Rs 69. Today, shares of the company saw a spurt in volume by more than  1.66 times on BSE.

Ashoka Buildcon Ltd is a construction company. The company builds and operates roads and bridges in India on a build, operate and transfer BOT (Build-Operate-Transfer) basis. The company reported positive numbers in both quarterly and annual financial statements.  

The shares of this company are trading at a PE of 5.03x whereas sectoral PE is 23.6x and an ROE of 49.7 per cent, all of which point to strong managerial performance. Investors should keep an eye on this stock for the upcoming trading sessions.