One of the small-cap stocks has engaged in construction and infrastructure facilities on an EPC and BOT basis. The stock has jumped by 1.64 percent after receiving an order for EPC work.
Stock Price Movement:
In Thursday’s trading session, Ashoka Buildcon Limited‘s share jumped by 1.64 percent from the previous close of Rs. 235.15. The stock opened at Rs. 238.30 and is currently trading at Rs. 239, with a high of Rs. 242.60 and a low of Rs. 237.60. The market capitalization now stands at approximately Rs. 6,723.32 crore.
What Happened:
Ashoka Buildcon Limited has received a project submitted to Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited. The project had an accepted bid price of Rs. 192.69 crore and is to be executed within 24 months.
The contract involves procurement for the supply, installation, testing, and commissioning of new 11 KV lines, LT lines on AB cable, distribution transformer substations, and supporting works for feeder separation under project financing from KfW in Chhindwara.
Segment Breakup and Orderbook:
Ashoka Buildcon Limited has expanded its business across various sectors, with its order book comprising 35.7% road EPC, 9% road HAM, 6% building EPC, 6.7% railways, and 42.7% power T&D.
For FY24, the company secured an order book of Rs. 11,697 crore, reflecting a 25.99% decrease compared to the previous year. As of September 2024, the order book stands at Rs. 10,356 crore.
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Client base of Ashoka Buildcon:
Ashoka Buildcon Limited works with leading infrastructure and transportation entities such as the National Highways Authority of India (NHAI), Karnataka State Highway Improvement Project (KSHIP), Tamil Nadu Road Development Company Limited (TNRDC), Ministry of Road Transport and Highways (MoRTH), Public Works Department (PWD), and several state development corporations, including MPRDC.
Recent quarter results and ratios:
Ashoka Buildcon Limited’s revenue has increased from Rs. 2,154 crore in Q2 FY24 to Rs. 2,489 crore in Q2 FY25, which has grown by 15.55 percent. The net profit of Ashoka
Buildcon Limited has also grown by 288.24 percent, from Rs. 119 crore in Q2 FY24 to Rs. 462 crore in Q2 FY25.
Ashoka Buildcon Limited’s revenue and net profit have grown at a CAGR of 17.91 percent and 34.33 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 27.1 percent and 22.7 percent, respectively. The debt-to-equity ratio of the company is to be 1.96x. Ashoka Buildcon Limited’s EPS is to be Rs. 34.
Company Overview:
Ashoka Buildcon Limited, established in 1976 and headquartered in Nashik, Maharashtra, has become a leading infrastructure developer in India. The company has constructed 14,000 lane km of highways and implemented power T&D projects for 30,000 villages.
The company operates as an integrated player in the Engineering, Procurement, and Construction (EPC) sector and undertakes Build-Operate-Transfer (BOT) and Hybrid Annuity Model (HAM) projects. It also engages in public-private partnerships (PPP) and provides services such as ready-mixed concrete and bitumen.
Written By – Nikhil Naik
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