Rs 11,697 crore order book & 52-week high: Heavy buying in this multibagger civil construction stock; Scrip saw a spurt in volume by more than 2 times on BSE

The stock gave multibagger returns of 195 per cent from its 52-week low of Rs 78.01 per share.

Today, the shares of Ashoka Buildcon Ltd surged 10.80 per cent and made a fresh new 52-week high of Rs 229.95 per share from its previous closing of Rs 207.55. At the closing bell, shares of the company were trading at Rs 219.30 per share, up 5.66 per cent with a spurt in volume by more than 2 times on BSE. The stock gave multibagger returns of 195 per cent from its 52-week low of Rs 78.01 per share.

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 6,000 crore and its current order book as of March 31, 2023, stands at Rs 11,697 crore i.e., 1.2x FY24 revenue.

Ashoka Buildcon Limited has secured an Engineering, Procurement and Construction (EPC) contract with Serneke International Group AB, a Swedish company, for a project floated by Baran International Limited. The project involves constructing 100 drinking water wells and supplying and installing drinking water supply units in 35 villages of the Ivory Coast. Ashoka Buildcon will complete the project by October 31st, 2026, with a possible extension upon mutual agreement. The total contract value is EURO 18.50 million, excluding customs duties, VAT, withholding taxes, and based on an itemized rate with escalation provisions.

Also Read: Heavy buying in this multibagger civil construction stock; Hit fresh 52-week high & Board is likely to announce bonus shares & stock split on June 22

Additionally, the company has emerged victorious as the lowest bidder for two significant infrastructure projects totalling Rs 2,152.72 crore undertaken by the Maharashtra State Road Development Corporation Ltd. Both projects involve constructing major bridges using the EPC (Engineering, Procurement, and Construction) mode and must be completed within 36 months, incorporating the monsoon season. The first bridge will span Jaigad Creek on the Revas-Reddi Coastal Highway (SH (special) No. 5) in Ratnagiri District for Rs 794.85 crore (plus GST), while the second bridge will traverse Kundalika Creek on the same highway for Rs 1,357.87 crore (plus GST).

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 FY24, FIIs bought a 5.33 per cent stake in the company and increased their stakes to 7.23 per cent compared to 1.90 per cent in FY23. The shares of this company are trading at a PE multiple of 12x, an ROE of 22 per cent and an ROCE of 35 per cent, all of which point to strong managerial performance. 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.