₹14,888 Cr Order Book: Stock Jumps After Receiving ₹307 Cr Order for Infra Project

Synopsis: A small cap company in the  business of construction and infrastructure facilities has added a Rs 307 Cr LoA to its robust order book of Rs 14888 Cr. Post this news the company stock witnessed a surge of 5 percent.

An Engineering, Procurement and Construction company saw its stock in focus after the company bagged a LoA worth Rs 307 Cr from a domestic government authority for an infrastructure project involving the construction of a signature bridge in Daman.

With a market cap of Rs 4,132 Cr, Ashoka Buildcon Ltd saw its stock hit an intraday high of Rs 151 which is 5 percent higher than the previous close of Rs 144. The company’s stock has given a compounded return of 18 percent in the last 3 years.

What’s the News?

Ashoka Buildcon Limited has received a Letter of Acceptance from the Public Works Department Work Division-I of Daman. This is for a major infrastructure project involving the construction of a signature bridge in Daman. The project entails developing a landmark bridge connecting Jampore Sea Front Road near the Lighthouse to Devka Sea Front Road at Parkota Sheri, in order to enhance coastal connectivity. 

This contract will be executed under the Design, Build and Operate (DBO) model and has been awarded by a domestic government authority. The accepted bid value stands at Rs 307.7 crore, with the design and construction scheduled to be completed within 30 months.

The Orderbook & Breakup

The company’s order book as of Q2FY26 stood at Rs 14,888 Cr. When breaking this number further down we realise 46 percent of this are Road EPC orders, 31 percent is Power T&D, 12 percent is Road HAM  while the rest includes orders from Railways and  Building EPCs. 

And while breaking this order book on client basis we realise 63 percent are state government orders, 13 percent are central government orders, 12 percent from HAM or Hybrid Annuity Model projects, while the rest of this number comes from private and overseas clients. Additionally, this order book has witnessed a growth of 34 percent YoY from last year’s Rs 11,104 Cr orderbook.

Business & Financial Overview

Ashoka Buildcon Ltd is an Indian infrastructure and construction company executing projects on an EPC and BOT basis across roads, highways, and bridges. The company also manufactures and sells ready-mix concrete (RMC) and switchgear concrete. Its key clients include NHAI, MMRDA, the Ministry of Road Transport and Highways, KRDCL, and BMC.

In the latest quarter the company saw its YoY revenue fall by 25 percent, going from Rs 2,489 Cr in Q2FY25 to Rs 1,851 Cr in Q2FY26, while the QoQ went down by 2 percent from Rs 1,887 Cr in Q1FY26. The YoY Net Profits also fell by 80 percent, going from Rs 462 Cr in Q2FY25 to Rs 91 Cr in Q2FY26, while the QoQ fell by 60 percent from Rs 227 Cr in Q1FY26.

The company has a 3 year Profit CAGR of 50 percent, while the TTM is at 70 percent. The company’s 3 year sales CAGR is at 19 percent, while the TTM is a negative 17 percent.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post ₹14,888 Cr Order Book: Stock Jumps After Receiving ₹307 Cr Order for Infra Project appeared first on Trade Brains.