Rs 17,566 crore order book & FIIs increase stake: Heavy buying in this multibagger civil construction stock; scrip hit 52-week high!

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 70.10 per share.

On Friday, one of the Top Gainers on BSE, shares of Ashoka Buildcon Ltd surged 4.50 per cent to make a new 52-week high of Rs 150.90 per share from its previous closing of Rs 144.60. The shares of the company saw a spurt in volume by more than 1.05 times on BSE.

Ashoka Concessions Limited (ACL), a subsidiary of Ashoka Buildcon Ltd, has announced the commercial operations date (COD) for its hybrid annuity mode project on National Highway-206 in Karnataka. The project, which was executed by Ashoka Banwara Bettadahalli Road Private Limited (SPV), a wholly owned subsidiary of ACL, was declared COD on October 18, 2023.

Following the declaration of COD, the SPV is eligible to receive annuity payments from the National Highways Authority of India (NHAI) for 15 years, at an interval of every 6 months. The company has also announced that the SPV has received the first annuity payment from NHAI.

Earlier, the company was awarded a contract worth Rs 645.70 crore by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to develop distribution infrastructure under the Revamped Distribution Sector Scheme (RDSS) for loss reduction works in four circles in the state of Maharashtra.

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).

Order Book Updates: The company's current order book as of September 30, 2023, stands at Rs 17,566 crore i.e., 2.5x FY23 revenue. Projects won worth Rs 9,453 crore in FY23.

The company has a market cap of over Rs 4,000 crore and reported positive numbers in its Quarterly Results and annual results. In the September quarter (Q2FY23), FIIs have increased their stakes from 2.40 per cent to 2.97 per cent.

The shares of this company are trading at a PE multiple of 13x, an ROE of 27 per cent and an ROCE of 39 per cent, all of which point to strong managerial performance.

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 70.10 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.