Rs 16,457 crore order book: This small-cap civil construction company has received the Provisional Certificate for its NHAI project

The company has ROCE of 27.1 per cent and ROE of 22.7 per cent.

Shares of Ashoka Buildcon Ltd surged more than 3.5 per cent on Tuesday on following development.

Ashoka Buildcon Ltd has received the Provisional Certificate for its NHAI project. The Commercial Operation Date (CoD) for an additional 8.595 KM stretch was declared on February 11, 2025, following the Independent Engineer’s approval on March 03, 2025. This adds to the previously received CoD for a 41.61 KM stretch effective September 08, 2023. The project, executed by Ashoka Karadi Banwara Road Private Limited under the Hybrid Annuity Mode (HAM), now has a total completed length of 50.205 KM out of 56.705 KM. With this, the SPV is eligible for annuity payments from NHAI every six months for the next 15 years

NHAI has announced projects totalling 3,400 kilometres worth Rs 1,11,000 crores in the pipeline.

Order inflow guidance for FY26 is anticipated between Rs 12,000 crores to Rs 14,000 crores, with revenue growth expected at 10 per cent to 15 per cent and margins of 10 per cent to 11 per cent.

FY25 revenue is expected to be flattish, potentially short by 2-3 per cent from last year's numbers.

About Company

Ashoka Buildcon Ltd is engaged in the business of construction and infrastructure facilities on EPC and BOT basis. It is also involved in the sale of RMC (ready mix concrete).

With a market capitalisation of Rs 4,827 crore and a PE ratio of 3.38x, the company trades at a discount compared to the industry PE of 29.5x. The company has ROCE of 27.1 per cent and ROE of 22.7 per cent.

Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.