Rs 11,697 crore order book: This multibagger civil construction company emerged as lowest bidder for 2 projects worth Rs 2,152.72 crore from MSRDCL

The stock gave multibagger returns of 145 per cent from its 52-week low of Rs 76 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 5,000 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 Ltd. has been selected as the lowest bidder for two major infrastructure projects undertaken by the Maharashtra State Road Development Corporation Ltd. The total value of these projects is Rs 2,152.72 crore.

The first project involves the construction of a major bridge across Jaigad Creek, located between Tawsal and Jaigad on the Revas-Reddi Coastal Highway (SH (special) No. 5) in Ratnagiri District, Maharashtra. This project will be executed using the Engineering, Procurement, and Construction (EPC) mode. Ashoka Buildcon submitted the lowest bid of Rs 794.85 crore (plus applicable GST) for this project. The completion timeframe is 36 calendar months, including monsoon season.

The second project entails building another major bridge across Kundalika Creek, situated between Revdanda and Salav on the same Revas-Reddi Coastal Highway. Similar to the first project, this one will also be constructed using the EPC method. Ashoka Buildcon's winning bid for this project was Rs 1,357.87 crore (plus applicable GST), and it needs to be completed within 36 calendar months, taking the monsoon season into account.

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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 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.

The stock gave multibagger returns of 145 per cent from its 52-week low of Rs 76 per share. 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.