Ashoka Buildcon shares up 4 per cent after saying it's the Lowest Bidder L-1 for project

Ashoka Buildcon shares up 4 per cent after saying it's the Lowest Bidder L-1 for project

Shares of Ashoka Buildcon went up 4 per cent in Wednesday's trade after the company said it was the Lowest bidder L-1 for a project, whose bid value is Rs 1,668. It is about 50 crore. The scrip rose by 3.58 per cent to a high of Rs 79.55 on the BSE after the development. The scrip is up 15.3 per cent from the May low of Rs 69 level.

Ashoka Buildcon said that the company had submitted Bid to National Highway Authority of India NHAI for the project. It was a request for a construction of 6 lane elevated corridor along with the development of existing 4 lane road at ground level from Aroor to Thuravoor Thekku section of NH 66 under Bharatmala Pariyojana in the state of Kerala in EPC mode.

The bid value of the project is 1,668 and the company is known as the Lowest Bidder L- 1 for the project. It's about 50 crore. The announcement was made pursuant to the Regulation 30 of SEBI LODR 2015, it said.

Ashoka Buildcon recently increased its revenue guidance to 25 -- 30 per cent YoY growth in FY 23 compared with earlier guidance of 15 -- 20 per cent growth, given the strong execution in H 1 up 43 per cent YoY It lowered its margin guidance to 9 -- 9.5 per cent for FY 23 from 9 -- 10 per cent, as margins are expected to remain under pressure in H 2 FY 23.

In Q 4 of FY23 there is a chance that a large part of the Buildings backlog of Rs 2,900 crore is likely to be executed. ABL's backlog is at Rs 14 900 crore, 2.7 times TTM revenues as on September 30. The bid pipeline is strong and ABL is confident that it will receive incremental order inflows of Rs 4,000 -- 5000 crore in FY 23 YTD inflows: Rs 1,900 crore Centurm Broking said on November 15.

It said higher debt levels and lower margins estimates and a rise in working capital levels and margin underperformance to peers remain a major concern.

It said that the completion of monetisation of ACL assets should address overhang of future cash support to the Ashoka Buildvon portfolio.