Rs 11,104 Crore Order Book: Civil Construction Company Executed a Concession Agreement Worth Rs 1,391 Crore with NHAI
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 140.40 per share.
On Tuesday, the shares of Ashoka Buildcon Ltd gained 5.56 per cent to Rs 293.25 per share from its previous closing of Rs 277.80 per share with an intraday high of Rs 294.70 and an intraday low of Rs 283.15. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 140.40 per share.
Ashoka Buildcon Limited has announced that its wholly owned subsidiary, Ashoka Bowaichandi Guskara Road Private Limited, has signed a Concession Agreement with the National Highways Authority of India (NHAI) on January 6, 2025. This agreement pertains to the development of a four-lane Economic Corridor between Bowaichandi and Guskara-Katwa Road (Section Km 89.814 to Km 133.000) of NH 116A in West Bengal, under the Hybrid Annuity Mode. The subsidiary was specifically established to undertake this project, as per the requirements outlined in the Concession Agreement.
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This is a domestic project awarded by the National Highways Authority of India. The scope of work involves the development of a four-lane Economic Corridor, as detailed in the Request for Proposal. The project is to be executed within 910 days, including monsoon periods. The accepted Bid Project Cost for this undertaking is Rs 1,391 Crore, excluding GST. This project aligns with Ashoka Buildcon's strategy of expanding its presence in the infrastructure sector and contributing to the development of India's road network.
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 8,000 crore and its current order book as of September 30, 2024, stands at Rs 11,104 crore.
In September 2024, FIIs increased their stake to 7.95 per cent compared to 7.63 per cent in June 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.