Buzzing Today: Shares of this small-cap construction company are up after securing an order worth Rs 258 crore

Buzzing Today: Shares of this small-cap construction company are up after securing an order worth Rs 258 crore

by 5paisa Research Team Last Updated: Dec 11, 2022 - 03:15 pm 15.2k Views
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The completion period is 24 months from the appointed date.

The shares of Ashoka Buildcon Ltd, an S&P BSE SmallCap Company, are buzzing on the bourses today. As of 1.56 pm, the shares of Ashoka Buildcon were trading at Rs 83.95 apiece, higher by 1.82% over the previous close. Meanwhile, the frontline index S&P BSE Sensex is down by 0.17%.

The surge in the share price of Ashoka Buildcon Ltd came on the back of an announcement made by the company yesterday. As per the exchange filing, the company received a Letter of Acceptance (LOA) from South Western Railway (SWR) for the construction of a new BG line between chainage 1,92,000 and chainage 1,71,640.

The project scope includes electrical & telecommunication works between Tolahunse (ex.) and Bharmasagar (ex.) stations in engineering, procurement & construction (EPC) mode. The accepted bid project cost for the project is Rs 258.12 crore. The completion period is 24 months from the appointed date.

Even in the pre-opening session today, the company’s shares witnessed heavy demand from buyers. Owing to this, the share price rallied by 5.5% during this time.

Ashoka Buildcon Limited is one of the leading highway developers in India. The company is an integrated EPC and BOT player. Besides the construction of highways and bridges, the company is also engaged in Power Transmission and Distribution on an EPC basis.

In the recent quarter Q1FY23, on a consolidated basis, the company’s net revenue increased by 46.40% YoY to Rs 1878 crore. Similarly, the bottom line increased by 70.4% YoY to Rs 128.98 crore.

The company is currently trading at a TTM PE of 2.78x against the industry PE of 47.3x. In FY22, the company delivered an ROE and ROCE of 77% and 24%, respectively.

Today, the scrip opened at Rs 87, which was also an intra-day high. The stock made an intra-day low of Rs 83.20. So far 2,23,311 shares have been traded on the bourses. The stock has a 52-week high and low of Rs 125 and Rs 69, respectively on BSE.

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