Significant Gains for Ashoka Buildcon Share Price Amidst New Contracts
In a notable development for investors, Ashoka Buildcon share price surged by 8% during morning trading on Monday, reflecting robust market confidence. This rally can be attributed to the company securing substantial contracts from state authorities in Maharashtra, signalling a strong pipeline of projects ahead.
Details of the Share Price Movement
The opening price of Ashoka Buildcon shares on the Bombay Stock Exchange (BSE) was ₹266.05, showing a slight increase from the previous closing price of ₹251.80. Following the news of the new contracts, the share price climbed to an intraday high of ₹272, cementing an 8% gain over the previous close. Such price movements indicate a positive market reception towards the company’s recent achievements.
New Engineering, Procurement, and Construction (EPC) Orders
Ashoka Buildcon has won a significant Engineering, Procurement and Construction (EPC) work order from the City & Industrial Development Corporation of Maharashtra Limited (CIDCO). The accepted bid for this project amounts to ₹1,673.24 Crore, exclusive of applicable GST. This domestic order is scheduled for completion within 1460 days from the commencement date, which includes critical considerations for the monsoon season. The scope of work encompasses the integrated infrastructure development of roads wider than 20 meters, several major and minor structures such as flyovers and bridges, alongside allied electrical works like street lighting under the NAINA project.
Additional Projects Secured in Maharashtra
In addition to the CIDCO project, Ashoka Buildcon has announced another EPC order received from the Maharashtra State Road Development Corporation Ltd. This order, valued at ₹1,284.00 Crores plus GST, involves the construction of a major bridge spanning the Kundalika Creek, linking Revdanda to Salav along the Revas Reddi Coastal Highway (SH (Special) No. 5) in the Ratnagiri District of Maharashtra. The completion timeline for this project is set at 36 months, further solidifying Ashoka Buildcon’s footing in the region’s infrastructure landscape.
Smaller Bridge Project Enhances Portfolio
Adding to its portfolio, Ashoka Buildcon has also secured an EPC work order worth ₹310 crore plus applicable GST. This project entails the construction of a major bridge across Bankot Creek, connecting Kolmandla in the Raigad District to Veshvi, also along the Revas Reddi Coastal Highway (SH (Special) No. 5). This initiative further emphasizes the company’s commitment to enhancing connectivity and infrastructure development in Maharashtra.
Outlook for Investors
The recent surge in Ashoka Buildcon’s share price, driven by the successful acquisition of major contracts, presents an optimistic outlook for investors. With these new projects aiming to bolster the infrastructure of Maharashtra, the company is well-positioned for continued growth and profitability in the coming years. Investors and market analysts will undoubtedly keep a close watch on Ashoka Buildcon as it executes these critical projects, which are integral to the state’s development trajectory.
