Ashoka Buildcon is making headlines because its subsidiary, Ashoka Bowaichandi Guskara Road Pvt. Ltd., just signed an agreement with the National Highways Authority of India (NHAI). This agreement is about building a new four-lane road in West Bengal, which connects Bowaichandi to Guskara-Katwa Road. The project is valued at ₹1,391 crores and will be done in a special way called “hybrid annuity mode,” meaning payments will be made during the project progress.
The road project, which covers a distance from Km 89.814 to Km 133.000 on NH 116A, is expected to take about 910 days to finish, including time for the rainy season. The company started a special branch to manage this project according to the agreement.
In the latest financial report, Ashoka Buildcon showed impressive results. Their profit jumped by 334.27% compared to last year, reaching ₹462.5 crore. Their total earnings also increased by 15.5%, amounting to ₹2,489 crore. Their earnings before interest, taxes, depreciation, and amortization (EBITDA) rose significantly too, showing good growth.
As for the stock market, analysts are optimistic about Ashoka Buildcon shares. Out of nine analysts, five suggest it’s a ‘strong buy,’ three say ‘hold,’ and one says ‘sell.’ The average price target for the shares is ₹279, which means they might go up by 1% soon.
However, on Monday, Ashoka Buildcon’s shares closed at ₹277.8, experiencing a drop of 9% while the main market index fell too. Despite this dip, the stock has gained 21% over the last six months and has seen a whopping 94% increase over the past year. The total value of the company’s shares is currently ₹7,798 crores.
(Disclaimer: Expert opinions are theirs alone and do not reflect the views of Niftystat.)
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