Infra stock trades flat after it receives LOA worth ₹ 662 Crores from CIDCO

The shares of one of the leading Infrastructure companies that operate on an Engineering, Procurement, and Construction (EPC) and build-operate-transfer (BOT) basis jumped 2 percent upon receiving a work order worth Rs. 662 Crores from City & Industrial Development Corporation of Maharashtra Limited(CIDCO).

Infra stock trades flat after it receives LOA worth ₹ 662 Crores from CIDCO.

At 1:18 p.m the shares of Ashoka Buildcon Limited were trading at Rs. 163.70, up 1.14 percent from its previous day’s close price of Rs. 161.85 and its market capitalization is Rs. 4,598 Crores.

Ashoka Buildcon Limited has received a Letter of Acceptance(LOA) from the City & Industrial Development Corporation of Maharashtra Limited(CIDCO) in relation to the bid placed earlier by the company.

The value of the received project is Rs. 662.55 Crores, for the Design and Construction of Stilt Bridge SBR – 9 for Eastern Connectivity for Navi Mumbai International Airport (NMIA) Project, ), in Joint Venture, where the Company is a Lead Member of JV.

Ashoka Buildcon Limited is engaged in the business of providing construction and infrastructure facilities for roads, railways, power, supporting services, and many more on an Engineering, Procurement, and Construction (EPC) and build-operate-transfer (BOT) basis. It has a strong customer base with some marquee clients like NHAI, Ircon International, Rail Vikas Nigam, NHIDCL, and many more.

As of November 2023, Ashoka Buildcon Limited has a strong order book of Rs. 15,000+ Crores and its segment breakup is as follows Power T&D 41.4 percent, Road EPC 35.4 percent, Road HAM 8.8 percent, Building EPC 5.3 percent, Railways 8.8 percent and city gas distribution 0.3 percent.

Its revenue from operations grew 35.03 percent from Rs. 5,998.98 Crores in FY22 to Rs. 8,100.48 Crores in FY23, accompanied by profits of Rs. 771.41 Crores to Rs. 372.91 Crores.

It has reported a return on equity (ROE) of 26.5 percent and a return on capital employed (ROCE) of 38.6 percent, it is making good returns on its equity and capital employed.

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