Ashoka Buildcon Ltd shares climbed as much as 12% in early trade on Monday, i.e. November 25, after the company’s subsidiary bagged an order from the National Highways Authority of India (NHAI) for a project in Telangana.
Shares of Ashoka Buildcon hit a high of Rs 104.40 in morning trade but later pared gains to trade at Rs 98.35 at 10:04 am, up 5.5% from its previous close. The stock has lost over 21% in the last one year. It had touched its 52-week high Rs 155 on 30 May 2019 and 52-week low of Rs 89.85 on 5 September 2019.
Ashoka Buildcon on Saturday informed bourses that its subsidiary Ashoka Concessions Ltd has received a Letter of Award (LoA) from NHAI for a highway project in Telangana worth Rs 1,000 crore.
“ACL has received a LOA from NHAI for the project viz Four laning of NH-161 from Kandi to Ramsanpalle in the State of Telangana under Bharatmala Pariyojna on Hybrid Annuity Mode. The accepted Bid Project Cost is Rs 1,000 crore,” the company said in a BSE filing.
The company had earlier this week informed that ACL had submitted its bid to NHAI for the said project, and had emerged as the lowest bidder at the financial bid opening meeting held on November 18, 2019.
Nashik-based highway developer Ashoka Buildcon had reported a 17% year-on-year growth in net profit at Rs 72.7 crore for the second quarter on revenue of Rs 822.31 crore, which was up 7.6%.
After the earnings, Kotak Institutional Equities had upgraded the stock to buy from neutral, though it had cut the target from Rs 210 to Rs 180, implying a 91% potential upside from the current level.