Ashoka Buildcon Ltd operates in construction and infrastructure on EPC and BOT models, including RMC sales. It holds equity in 21 direct and 16 indirect subsidiaries, mainly for BOT and HAM projects. With nearly three decades of experience, ABL has completed over 14,000 lane kilometres of roads. It manages 11 HAM projects, nine operational and two under construction, handling EPC and O&M responsibilities. ABL also modernizes power distribution for various entities and participates in railway electrification projects.
CMP as on 23rd April’24 | Rs.176
| Mcap | 5000 cr |
| Stock PE | 14.6 |
| Book Value | 69 |
| ROCE (Q-o-Q) | 38.6% |
| ROE (Q-o-Q) | 26.5% |
| Face Vaule | 2 |
| Price to book | 2.56 |
| EVEBITDA | 3 |
| Promoter holding | 54.5% |
| Debt | 2,250 cr |
| Debt to Equity | 1.16 |
Business Segment:
- Road EPC& BOT/ Annuity/ HAM toll segment
- Buildings Segment
- Railways Segment
- City Gas Distribution Segment
Latest Update: As of February 2024, Ashoka Buildcon Ltd maintains a robust order book worth Rs. 14,025 Cr, compared to Rs. 15,805 Cr in March 2023 and Rs. 13,731 Cr in March 2022. This order book predominantly consists of road EPC and HAM projects (43%), followed by power projects (42%), with the remainder from Building EPC, Railways, and CGD businesses.
dditionally, the company anticipates a substantial inflow of Rs. 10,000 crore in its order book for FY 2024. This projection is based on the Ministry of Surface Transport’s plan for approximately 18,000 kilometers of roads across NHAI, MRTH, NHIDCL, and state NHs. Moreover, the company foresees promising opportunities from Railways, metros, and semi-high-speed railways.
In February 2024, the company sold its equity stake in subsidiary Unison Enviro Private Limited to Mahanagar Gas Ltd., resulting in a receipt of Rs. 286 crore. As of now, the company holds cash reserves of approximately Rs. 486 crores.
Management Update:
The company’s management is upbeat about the industry’s future prospects, buoyed by a 2.7% increase in budgetary allocation. Recent developments include receiving a letter of acceptance from CIDCO for the design and construction of the Still Bridge for eastern connectivity to the Navi Mumbai International Airport. This project, undertaken in a joint venture, carries a total consideration of INR 662.55 Crore, with Ashoka Buildcon holding a 51% share amounting to INR 337.9 Crore.
Moreover, the company secured a letter of award for the 6-laning project of the Aurangabad, Bihar, Jharkhand border section of NH-2 in Bihar under the Bharatmala EPC mode, valued at INR 520 Crore.
Ashoka Buildcon and its subsidiary, Ashoka Concessions Limited, are progressing towards divesting their entire stake in specific subsidiaries awarded by NHAI for road projects under HAM and BOT models. Anticipating finalization within the next 12 months, these project assets and liabilities are classified as held for sale.
The road order book encompasses projects worth INR 1,188 Crore for HAM projects and INR 4,475 Crore for EPC road projects. Railway projects stand at around INR 1,153 Crore. The company aims to sustain a growth rate of 15 to 20%.
Looking ahead, the company expects a significant order inflow starting from Q2, targeting an addition of at least INR 6,000 Crore to INR 8,000 Crore to the order book in the coming year.
Share holding patters
| Dec’23 | Sept’23 | June’23 | Mar 24 | |
| Pro Holding | 54.48% | 54.48% | 54.48% | 54.48% |
| FII | 7.23% | 4.51% | 2.97% | 2.40% |
| DII | 17.63% | 19.72% | 19.96% | 18.64% |
| Public | 20.66% | 21.28% | 22.60% | 24.48% |
Industry Update:
The government’s estimations indicate that infrastructure spending has a multiplier effect of 2.45x on GDP in the capital expenditure year and 3.14x in the subsequent year. With an outlay of INR 11.11 lakh Crore for infrastructure in FY ’25, the availability of long-term interest-free capital expenditure loans, and the initiation of 3 new railway economic corridor programs as per the budget, the sector is poised for growth.
The Ministry of Road Transport and Highways has made significant progress, having constructed 6,216 kilometers of national highways by December 2023, compared to 5,774 kilometers in the previous year. Their target for this fiscal year is a national record of 13,813 kilometers of highway construction.
Additionally, the Ministry plans to develop 14 new expressways and high-speed corridors under the PPP model, covering 2,279 kilometers with an investment of INR 1.3 lakh Crore. Efforts are underway to streamline pre-construction activities such as land acquisition, regulatory clearances, and environmental assessments, facilitating smoother contract awards through proactive coordination with state governments and relevant authorities.
Revenue update: Y-o-Y
| Mar’23 | Mar’22 | Mar’21 | Mar’20 | Mar’19 | |
| Sales | 8,100 | 6,000 | 4,990 | 5,070 | 4,930 |
| OP | 1`,969 | 1,789 | 1,536 | 1,575 | 1,393 |
| PAT | 588 | 932 | 438 | 326 | 131 |
| EPS | 13.23 | 27.73 | 9.83 | 5.89 | -1.19 |
Revenue Update: Q-o-Q
| Dec’23 | Sept’23 | Jun’23 | Mar’23 | Dec’22 | |
| Sales | 2,657 | 2,154 | 1,935 | 2,448 | 1,956 |
| OP | 587 | 546 | 473 | 556 | 490 |
| PAT | 110 | 119 | 72 | 34 | 138 |
| EPS | 3.82 | 4 | 2.41 | 1.32 | 4.85 |
In conclusion, Ashoka Buildcon Ltd stands at the forefront of infrastructure development, poised for substantial growth and impactful contributions to the industry. With a robust portfolio, strategic initiatives, and a commitment to excellence, the company is well-positioned to capitalize on emerging opportunities and continue its journey of innovation and success in the years ahead.
