Ashoka Buildcon stock rises 3% after firm bags Rs 193 crore order
Interestingly, Ashoka Buildcon secured this new contract on the same day it lost another after the NHAI cancelled its bid for a road project in West Bengal.
Shares of Ashoka Buildcon rose 3 percent on November 28 after the company secured an engineering, procurement and construction (EPC) order worth Rs 192.59 crore from the from Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company.
The scope of the project, which has an execution time of 24 months, involves the procurement, installation, testing, and commissioning of new 11 kV lines and related infrastructure under the feeder separation programme financed by KfW.
At 09.25 am, shares of Ashoka Buildcon were trading at Rs 239.85 on the NSE.
In an interesting turn of events, the construction company secured this new contract on the same day it lost another. Ashoka Buildcon announced that the National Highways Authority of India (NHAI) cancelled its bid for the Kharagpur-Chandrakona-Ghatal road project (Package-1) in West Bengal due to administrative reasons, as the company was the sole bidder.
The cancelled project involved the development of a 41-km stretch under the Hybrid Annuity Mode (HAM), part of NHAI’s economic corridor initiative.
Despite this setback, Ashoka Buildcon still has a Letter of Award that it received last week for the Bowaichandi-Guskara-Katwa project (Package-3). Covering 43 km, this new project marks a significant addition to the company’s portfolio.
These orders will further strengthen the company’s solid order book which stood at Rs 11,104 crore at the end of the September quarter, excluding L1 projects worth Rs 265 crore and additional LOA for projects received after September 30, worth a total of Rs 4,320 crore.
Within the total order book, road projects of with the HAM or EPC mode, made up 82.2 percent, while others like buildings, railways and power transmission and distribution projects stood in the range of 5-7 percent.
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