Ashoka Buildcon shares surged over 4 percent to Rs 290 per share on January 7, following the announcement that its wholly-owned subsidiary, Ashoka Bowaichandi Guskara Road, signed a concession agreement with the National Highways Authority of India (NHAI). The agreement is for the development of a four-lane economic corridor in West Bengal.
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The project, valued at Rs 1,391 crore, involves constructing the Bowaichandi to Guskara-Katwa Road Section on NH 116A and will be executed under the hybrid annuity model. The project is expected to be completed in 910 days, including the monsoon period. A special purpose vehicle (SPV) has been set up for the project's execution as per the concession agreement.
In another recent development, Ashoka Buildcon entered into a Rs 1,055 crore agreement with Bangalore International Airport on November 29, 2024.
The project includes constructing elevated western crossfield taxiways, taxiway systems, pavements, drainage works, and ancillary buildings at Kempegowda International Airport, Bengaluru. This engineering, procurement, and construction-based project is scheduled for completion in 24 months.
In the second quarter, Ashoka Buildcon reported a staggering 334.27 percent year-on-year (YoY) increase in net profit, reaching Rs 462.5 crore. Revenue from operations grew by 15.5 percent to Rs 2,489 crore, while EBITDA surged 65.8 percent to Rs 905.3 crore. EBITDA margins also expanded significantly to 36.4 percent in Q2FY25, compared to 25.3 percent in the same period last year.
Over the last three months, Ashoka Buildcon's stock has rallied by more than 25 percent, outperforming the benchmark Nifty 50 index, which declined by 4 percent. The stock reached a 52-week high of Rs 319 per share on December 31, 2024.
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