Ashoka Buildcon’s Arm Wins Rs 13.91-Bn NHAI Project in WB
ROADS & HIGHWAYS

Ashoka Buildcon’s Arm Wins Rs 13.91-Bn NHAI Project in WB

Ashoka Buildcon shares are expected to be in the spotlight on January 7, following the announcement that its wholly-owned subsidiary, Ashoka Bowaichandi Guskara Road, has entered into a concession agreement with the National Highways Authority of India (NHAI). The agreement pertains to the development of a four-lane economic corridor in West Bengal.

The company disclosed in an exchange filing that its subsidiary, Ashoka Bowaichandi Guskara Road, signed the agreement with NHAI on January 6, 2025. This project involves the development of a 4-lane economic corridor spanning from the Bowaichandi to Guskara-Katwa Road Section, covering Km 89.814 to Km 133.000 of NH 116A (Package-3). The development will be executed under the hybrid annuity mode.

The project, valued at Rs 13.91 billion, includes constructing the specified road section on NH 116A and is expected to be completed within 910 days, including the monsoon period. A special purpose vehicle (SPV) was established specifically to manage the execution of this project, in alignment with the concession agreement requirements.

In its Q2 FY25 financial results, Ashoka Buildcon reported a significant year-on-year (YoY) increase of 334.27 per cent in net profit, amounting to Rs 4.62 billion, compared to Rs 1.06 billion during the same period in the previous fiscal year. Revenue from operations also rose by 15.5 per cent, reaching Rs 24.89 billion, up from Rs 21.54 billion in the corresponding quarter of the prior fiscal year. Meanwhile, EBITDA experienced a robust growth of 65.8 per cent, rising to Rs 9.05 billion from Rs 5.46 billion in the same quarter last year. The EBITDA margin improved to 36.4 per cent in Q2 FY25, compared to 25.3 per cent in Q2 FY24.

According to analysts tracked by Trendlyne, five out of nine recommend a "strong buy" for Ashoka Buildcon shares, with three advising to "hold" and one suggesting a "sell." The average 12-month target price is Rs 279, indicating a potential upside of 1 per cent from current levels.

Ashoka Buildcon shares are expected to be in the spotlight on January 7, following the announcement that its wholly-owned subsidiary, Ashoka Bowaichandi Guskara Road, has entered into a concession agreement with the National Highways Authority of India (NHAI). The agreement pertains to the development of a four-lane economic corridor in West Bengal. The company disclosed in an exchange filing that its subsidiary, Ashoka Bowaichandi Guskara Road, signed the agreement with NHAI on January 6, 2025. This project involves the development of a 4-lane economic corridor spanning from the Bowaichandi to Guskara-Katwa Road Section, covering Km 89.814 to Km 133.000 of NH 116A (Package-3). The development will be executed under the hybrid annuity mode. The project, valued at Rs 13.91 billion, includes constructing the specified road section on NH 116A and is expected to be completed within 910 days, including the monsoon period. A special purpose vehicle (SPV) was established specifically to manage the execution of this project, in alignment with the concession agreement requirements. In its Q2 FY25 financial results, Ashoka Buildcon reported a significant year-on-year (YoY) increase of 334.27 per cent in net profit, amounting to Rs 4.62 billion, compared to Rs 1.06 billion during the same period in the previous fiscal year. Revenue from operations also rose by 15.5 per cent, reaching Rs 24.89 billion, up from Rs 21.54 billion in the corresponding quarter of the prior fiscal year. Meanwhile, EBITDA experienced a robust growth of 65.8 per cent, rising to Rs 9.05 billion from Rs 5.46 billion in the same quarter last year. The EBITDA margin improved to 36.4 per cent in Q2 FY25, compared to 25.3 per cent in Q2 FY24. According to analysts tracked by Trendlyne, five out of nine recommend a strong buy for Ashoka Buildcon shares, with three advising to hold and one suggesting a sell. The average 12-month target price is Rs 279, indicating a potential upside of 1 per cent from current levels.

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