Rs 11,697 crore order book: Multibagger civil construction company emerged as the Lowest Bidder (L-1) for orders worth Rs 1,280.80 crore from MMRDA
The stock gave multibagger returns of 170 per cent from its 52-week low of Rs 89 per share.
Today, the shares of Ashoka Buildcon Ltd plunged 5.03 per cent to Rs 239.65 per share from its previous closing of Rs 252.35 with an intraday high of Rs 259.50 and an intraday low of Rs 237.25. The stock gave multibagger returns of 170 per cent from its 52-week low of Rs 89 per share.
Ashoka Buildcon Limited has secured two engineering, procurement, and construction (EPC) contracts from the Mumbai Metropolitan Region Development Authority (MMRDA) by emerging as the lowest bidder. The first contract involves designing and constructing a creek bridge from Kolshet to Kalher, with a quoted bid price of Rs 289.60 crore plus applicable GST and is expected to be completed within 42 months including monsoon periods. The second contract entails designing and constructing another creek bridge from Gaimukh to Payegaon, with a quoted bid price of Rs. 991.20 crores plus applicable GST and has a projected completion timeline of 36 months including monsoon periods. Both projects are domestic contracts.
Ashoka Buildcon Ltd is engaged in the construction and infrastructure facilities business on an EPC (engineering, procurement and construction) and BOT (Build-Operate-Transfer) basis. It is also involved in the sale of RMC (ready-mix concrete). The company has a market cap of over Rs 6,700 crore and its current order book as of March 31, 2023, stands at Rs 11,697 crore i.e., 1.2x FY24 revenue.
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According to Quarterly Results, the net sales increased by 24.65 per cent to Rs 3,051.87 crore in Q4FY24 compared to net sales of Rs 2,448.42 crore in Q4FY23. The company reported a turnaround net profit of Rs 263.42 crore in Q4FY24 compared to a net loss of Rs 45.03 crore in Q4FY23, an increase of 685 per cent.
In June 2024, FIIs and DIIs increased their stake to 7.63 per cent and 19.32 per cent, respectively compared to 7.23 per cent and 17.63 per cent, respectively in March 2024. Investors should keep an eye on this Small-Cap stock for upcoming trading sessions.
Disclaimer: The article is for informational purposes only and not investment advice.
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