Ashoka Buildcon Soars 8% on Four-fold Net Profit Jump

On November 13, Ashoka Buildcon's stock saw an impressive 8% jump, reaching ₹240 per share. The company caught investors' attention after posting strong results for the July-September quarter.

Ashoka Buildcon, a major player in highway development, reported a remarkable fourfold increase in net profit, reaching ₹462 crore in Q2FY25, compared to ₹106 crore during the same period last year. Revenue also climbed, growing 15.5% year-over-year to ₹2,489 crore.

The company’s operating performance was also impressive, with EBITDA (earnings before interest, taxes, depreciation, and amortization) surging by more than 65% year-over-year to ₹905 crore, and its EBITDA margin expanding to 36.4%.

These strong results were announced after market hours. By the close of trading, Ashoka Buildcon share price ended at ₹225.05 on the BSE, down ₹7 or 3.02%.

Among brokerages, six recommend a "buy" on Ashoka Buildcon, with two advising "hold" and one suggesting a "sell." So far in 2023, the stock has climbed over 60%, handily outperforming the Nifty 50 index, which has gained around 9%.

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Year-to-date, the stock is up by an impressive 71%, while the past year alone has seen a 68% gain. In comparison, the BSE Sensex is up 8.6% year-to-date and 20.8% over the past year.

Ashoka Buildcon’s current market value stands at ₹6,584.36 crore. The stock trades at a price-to-earnings ratio of 13.52, with an earnings per share of ₹16.64.

Recently, the company won a contract worth ₹312.13 crore from the Maharashtra State Electricity Transmission Co. This project, based in Amravati, Maharashtra, involves setting up a 400/220 kV substation and associated transmission lines, to be completed within 18 months.

In other news, Ashoka Buildcon recently acquired an additional 34% stake in Ashoka Concessions (ACL) for ₹1,526 crore, which now makes ACL a wholly-owned subsidiary.

The company’s expertise spans infrastructure projects completed on engineering, procurement, and construction (EPC) models as well as build, operate, and transfer (BOT) models. It also supplies ready-mix concrete and, in some projects, sets up special-purpose vehicles (SPVs) to collect tolls to cover construction costs.