Ashoka Buildcon Secured Projects Worth Rs 2309.99 Crore

Ashoka Buildcon Ltd. saw its share price soar over 8% today,  Monday, October 14, 2024, hitting its highest in more than a month. This jump came right after the company announced it had secured three major projects worth a total of Rs.2,309.99 crore from the Maharashtra State Road Development Corporation (MSRDC).

Details of the Projects

The first two projects involve the construction of major bridges along the Revas Reddi Coastal Highway in Ratnagiri District. The company will build a bridge across Jaigad Creek for Rs.715.99 crore and another across Kundalika Creek for Rs.1,284 crore. Both projects will take 36 months to complete, including monsoons.

The third project, valued at Rs.310 crore, involves the construction of a bridge across Bankot Creek between Kolmandla and Veshvi in Raigad District. Like the other two, it’s also set to be completed within 36 months.

Broader Project Wins

Ashoka Buildcon has been active in securing large-scale projects in 2024. In early October, it bagged a Rs.1,673.24 crore contract from the City & Industrial Development Corporation of Maharashtra (CIDCO). The company was also declared the lowest bidder for a Rs.918 crore project by Brihanmumbai Municipal Corporation (BMC) and was awarded a Rs.474.10 crore contract by Mumbai Metropolitan Region Development Authority (MMRDA).

Stock Performance

Ashoka Buildcon’s stock jumped to Rs.272.25, a gain of 8.19%. This is the highest level the stock has reached since September 6, 2024. By mid-morning, the stock was still up 4.2%, trading at Rs.262.10. In comparison, the NSE Nifty 50 index advanced 0.6%.

Ashoka Buildcon has had a good year, with its stock up 88.8% so far in 2024 and 102% over the past 12 months. Trading volume was also high, with 3.88 times more shares being traded compared to the 30-day average.

Conclusion: With multiple projects and good stock performance, Ashoka Buildcon is doing well in the infrastructure space. The company securing large-scale contracts positions it as a big player in the sector, though some analysts caution that the stock may be nearing its peak.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.