Ashoka Buildcon Ltd. on Wednesday announced that it has emerged as the lowest bidder for a project involving the construction of a 6-lane elevated corridor in Kerala.
Ashoka Buildcon said that it had submitted a bid to the National Highways Authority of India (NHAI) for the construction of a 6-lane elevated corridor along with the development of an existing 4-lane road at ground level from Aroor to Thuravoor Thekku section of NH-66 under the Bharatmala Pariyojana in Kerala on EPC (engineering, procurement, and construction) mode.
The company has now emerged as the lowest bidder (L-1) for the project, the bid value of which is Rs 1,668.50 crore.
Reacting to the announcement, the Ashoka Buildcon stock rose up to 3.5 percent to hit a high of Rs 79.60 in early trade on Wednesday.
The Ashoka Buildcon stock has proven to be an underperformer over the past year. Its share price has slipped more than 16 percent during the period compared to a 9.3 percent increase in the benchmark Nifty 50 index.
During the September quarter, the company’s consolidated net profit declined 20.4 percent to Rs 63.66 crore. Net sales witnessed a 43 percent increase to Rs 1,807 crore. The total order book stood at Rs 14,901 crore.
In a post-earnings note, brokerage firm HDFC Securities said it was maintaining a ‘BUY’ on the Ashoka Buildcon stock, with a reduced target price of Rs 134 per share.
