Shares of Ashoka Buildcon jumped 11 per cent to Rs 98.50 on the BSE in intra-day trade on Friday, after the company received a letter of award (LOA) from Gujarat Rail Infrastructure Development Corp (G-RIDE).
"The LOA is for the project 'Gauge conversion of Bechraji (63.83 KM) - Ranuj (101.983 KM) Section, total length of 38.1 km metre gauge to broad gauge with 25 KV AC electrification in Ahmedabad. The accepted project cost is Rs 333.625 crore," Ashoka Buildcon said in a exchange filing.
At 11:13 am; the stock was trading 8 per cent higher at Rs 96 on the BSE, as compared to 0.38 per cent rise in the S&P BSE Sensex. The trading volume more-than-doubled with a combined 4.4 million equity shares changed hands on the NSE and BSE. It had hit a 52-week high of Rs 118.65 on February 17.
Despite today’s gain, in past one month, the stock of roads & highways construction company has underperformed the market by falling 10 per cent, as compared to 2.7 per cent decline in the S&P BSE Sensex.
"The company received a large EPC order worth Rs 503 crore in the solar segment. Execution will be completed in three - four years, with EBITDA margin expected to be in 10- 11 per cent range. Order book stood strong at Rs 9,152 crore, up 13 per cent YoY. Strong execution over the past two years is commendable. However, the pending PE exit in the asset portfolio is an overhang on the stock," analysts at Motilal Oswal Securities had said in a recent Q3FY21 results update note.
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