Ashoka Buildcon gains 4% on securing orders worth Rs 755 cr
Shares of Ashoka Buildcon hit an over three-month high at Rs 91.85, gaining 4 per cent on the BSE in Thursday’s intra-day trade in an otherwise weak market after the company won an order worth of Rs 755 crore. The stock of civil construction company was trading at its highest level since September 12, 2022.
At 11:10 AM; the stock traded 1 per cent higher at Rs 89.15 on the BSE. In comparison, the S&P BSE Sensex was down 0.56 per cent at 60,570. In past one month, the stock has rallied nearly 20 per cent, as compared to 3.4 per cent decline in the Sensex.
Ashoka Buildcon in an exchange filing said the company was awarded projects worth Rs 754.6 crore from the Madhya Pradesh PoorvKshetra Vidyut Vitaran Company for supply, installation, testing and commissioning of new 11 KV lines in the Balaghat, Satna and Rewa circles.
Meanwhile, as on September 30, 2022, the total order book of the company stood at Rs 14,901 crore. Of the total order book, the contribution from roads HAM and roads EPC is Rs 2,689.2 crore and Rs 5,573.2 crore respectively, Power T&D & others is Rs 2,233.1 crore, Railways is Rs 1,497.5 crore, Buildings EPC is Rs 2,866.7 crore and CGD contributes the rest Rs 41.2 crore.
India’s infrastructure sector is rapidly growing and the key trends show positivity and optimism. The Government of India is also progressively stepping up its infrastructure spending through Budgetary and non-Budgetary support. The roadmap for the infrastructure sector over the next few years appears to be robust. However, much will depend on proper allocation of funds, achievement of targeted short-term goals and the execution mechanism being put in place, Ashoka Buildcon said in its FY22 annual report.
There are tremendous opportunities in the near and long term for the infrastructure space in India. The government’s ambitious infrastructure development programmes like Bharatmala Pariyojana and National Infrastructure Pipeline (NIP) provide significant opportunities for market players to grow themselves and let others also to grow in the sector.
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