Ashoka Buildcon shares rose 5% to Rs 117.15 on BSE in intraday trading on Tuesday after the company said it received a Letter of Acceptance (LOA) from the National Highways Authority of India (NHAI) for the development of Memmadpur (Ambala) – Banur (IT City Chowk) – Corridor Kharar (Chandigarh) for an offer of Rs 726 crore.
The stock of the road and highway construction company was trading near its 52-week high of Rs 118.65 hit on February 17, 2021. At 9:41 am, the script was trading at Rs 114.80, up 3 percent on BSE, compared to a 0.41 percent gain in S&P BSE Sensex. At the time of writing, 2.4 million combined shares had changed hands on the NSE and BSE counter.
Over the past three months, Ashoka Buildcon has outperformed the market by surging nearly 30% against an 8.5% increase for the S&P BSE Sensex.
As of March 31, 2021, the company’s total order backlog was Rs 8,167 crore excluding orders valued at Rs 1,949 crore which includes the LOA received for the EPC project ( engineering, procurement and construction) of the Maldives, the G-RIDE project and L-1. for the Punjab EPC Road Project. On the total order book, the contribution of HAM (Hybrid Annuity Model) routes and EPC routes is Rs 3,471 crore and Rs 2,712 crore, respectively; T&D and others power is Rs 1,376 crore, railways Rs 537 crore and CGD contributes the rest.
“Ashoka Buildcon guided revenue to a 20% year-on-year increase in fiscal 22E, as workforce efficiency increased to around 90-95% in the first quarter of fiscal year 22. The order book of Rs 101 billion (3x TTM revenues) provides visibility on revenues and additional new orders are expected at Rs 70 billion during FY22. The monetization of ACL’s assets has accelerated and the company plans to sell road assets on an ad hoc basis. While it may take a while, we believe it could see the monetization of the ACL portfolio, ”IDBI Capital analysts said in the March quarterly results update.