Ashoka Buildcon stock jumps 4% on securing ₹775 cr order
Shares of Ashoka Buildcon Ltd (ABL) surged over 4% in intraday trade on Thursday after the construction and engineering company said it bagged an order worth ₹754.57 crore. The highway construction firm has bagged the order from Madhya Pradesh PoorvKshetra Vidyut Vitaran (MPPKVVCL), it said in a BSE filing on Wednesday.
Boosted by the development, Ashoka Buildcon share price opened 2.7% higher at ₹90.5 against the previous closing price of ₹88.15 on the BSE. The stock gained momentum and climbed as much as 4.2% to hit an intraday high of ₹91.85, while the market capitalisation rose to ₹2,498.4 crore. The smallcap stock has been gaining for the last four sessions and has risen 16% during the said period, in contrast to a 1% decline in the BSE Sensex.
Ashoka Buildcon shares had a mixed journey in 2022. The stock started the year on a strong note, hitting a 52-week high of ₹108.50 on January 5, while it lost momentum and slipped to a 52-week low of ₹69 on May 25. The stock currently trades 33% higher than its 52-week low and 15% lower than its record high. The share has delivered a negative return of 11% in a year, while it soared 21% in the past six months. In the last one month, the counter has gained 16%, while it has risen 11% in a week.
Ashoka Buildcon in an exchange filing on Wednesday said it has been awarded a contract from MPPKVVCL for supply, installation, testing and commissioning of new 11 KV lines, LT line on AB cable, distribution transformer substation and supporting works such as DPs, TPs, Crossing etc. for separation of 11 KV mix Feeders & Mix DTRs under revamped reforms-based and results-linked distribution sector (Package-06) in Balaghat circle of MPPKVVCL, Jabalpur Company area. The project also covers Satna and Rewa circles of MPPKVVCL, Jabalpur Company area.
Earlier this month, the company had bagged a project from National Highway Authority of India (NHAI) worth ₹1,668.50 crore. The contract covers construction of 6 lane elevated corridor along with the development of existing 4 lane road at ground level from Aroor to Thuravoor Thekku section of NH – 66 (from Km. 366+330 to Km. 379+082 of NH-66) (Length 12.752 Km) under Bharatmala Pariyojana in the State of Kerala on EPC mode.
In a separate development, the highway developer monetised its stake in Jaora-Nayagaon Toll Road Company (JTCL) as part of its strategy to free up its tied up capital and become asset free in future. The company, through its subsidiaries Ashoka Concessions and Viva Highways, entered into a share purchase agreement with National Investment & Infrastructure Fund and Jaora Nayagaon Toll Road Co. for sale of a 100% stake in JTCL for ₹691 crore. The current shareholding of Ashoka Concessions and Viva Highways is 37.7% and 10.3%, respectively, and the deal is expected to close by end of FY23. The completion of the deal is subject to certain conditions including acquisition of balance equity shares held by other shareholders and receipt of lenders approval and the Madhya Pradesh Road Development Corporationn Ltd.