Ashoka Buildcon Bags Rs 1,055-Crore Project From Bengaluru Airport Authority
The project, which will be executed on an engineering, procurement and construction basis, is required to be completed within 24 months.
Ashoka Buildcon Ltd. signed an agreement with Bangalore International Airport Ltd. for project worth Rs 1,055 crore for the construction of elevated western crossfield taxiways.
The associated works at the Kempegowda International Airport include taxiway systems, pavements, drainage works and ancillary buildings, according to an exchange filing on Friday.
The project, which will be executed on an engineering, procurement and construction basis, is required to be completed within 24 months, it said.
Earlier this week, the National Highways Authority of India cancelled an economic corridor project for "administrative reasons" as Ashoka Buildcon was the only bidder for the project.
The Rs 1,400-crore project involved construction of a four-lane economic corridor from Kharagpur to Chandrakona-Ghatal Road in West Bengal. The NHAI has announced re-bid notice for the project and the highway developer is eligible for re-bidding.
Ashoka Buildcon's consolidated net profit jumped more than fourfold to Rs 462.5 crore in the second quarter of the current financial year. Revenue rose 16% to Rs 2,488.9 crore in comparison to Rs 2,154.3 crore in the year-ago period.
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The share price of Ashoka Buildcon closed 4.22% higher at Rs 249.47 apiece on the National Stock Exchange, compared to a 0.91% rise in the benchmark Nifty. The stock has risen 85.20% in the last 12 months and 79.15% on a year-to-date basis.
Out of the 11 analysts tracking the company, six have a 'buy' rating on the stock, four recommend 'hold' and one maintains a 'sell', rating according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 7.5%.
