Ashoka Buildcon continues to set benchmarks in the construction industry with its robust project pipeline and unwavering focus on quality and efficiency.
Ashoka Buildcon Ltd. has recently announced a significant achievement by winning two major infrastructure projects in Maharashtra, totaling ₹2,591 crore. Among these, a standout project is the ₹1,673 crore initiative awarded by the City & Industrial Development Corporation of Maharashtra Ltd. (CIDCO), marking a pivotal moment for the construction company.
Key Highlights:
CIDCO Project Value: ₹1,673.24 crore
BMC Project Value: ₹918 crore
Completion Timeline for CIDCO Project: 1,460 days
Stock Performance: +90.06% over the last 12 months
Details of the CIDCO Project
The project, secured by Ashoka Buildcon's joint venture, Ashoka JV, encompasses a comprehensive scope of work, including engineering, procurement, and construction (EPC). The Letter of Acceptance (LOA) for the CIDCO project was awarded at a bid price of ₹1,673.24 crore, exclusive of GST. This ambitious venture will involve the development of roads wider than 20 meters, alongside the construction of major and minor structures, including:
-> Flyovers
-> Bridges
-> Underpasses (VUPs and PUPs)
-> Allied electrical works, such as street lighting
This project is part of the NAINA Project in TPS-10 and TPS-11 and is scheduled for completion within 1,460 days from the commencement date, including the challenging monsoon period.
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BMC Project Win
In addition to the CIDCO project, Ashoka Buildcon also clinched a second significant project from the Brihanmumbai Municipal Corporation (BMC) valued at ₹918 crore. This project entails the construction of flyovers at T Junction on the Sion-Panvel Highway and is set to be completed in 30 months. The company’s wholly-owned subsidiary, Viva Highways Ltd. (VHL), has recently monetized land in Hinjewadi, Pune, which adds ₹453 crore to its real estate portfolio, enhancing its financial standing.
Market Response
Following the announcement of these projects, Ashoka Buildcon's stock experienced a notable uptick, rising by 4.04% during the day to reach ₹253.89 per share on the NSE, ultimately closing at ₹251.64. This positive market response reflects growing investor confidence in the company, which has seen its stock rise 90.06% over the past year and 83.81% year-to-date. Analysts maintain a positive outlook, with eight out of twelve recommending a 'buy' rating.