Ashoka Buildcon Ltd.'s share price fell more than 3% on Wednesday after the National Highways Authority of India cancelled an economic corridor project for which it emerged as the lowest bidder.
The project involved the development of a four-lane economic corridor from Kharagpur to Chandrakona-Ghatal Road in West Bengal. The quoted bid for the project was Rs 1,400 crore, excluding goods and services tax.
Since Ashoka Buildcon was the only bidder for the project, NHAI has "cancelled the same for administrative reasons", Ashoka Buildcon said in an exchange filing. NHA has issued a fresh re-bid notice for the project, and the company is eligible for re-bidding, it added.
On Nov. 25, NHAI issued the letter of award to the highway developer for another project in West Bengal. Worth Rs 1,391 crore, the project involves the development of four lane economic corridor from Bowaichandi to Guskara-Katwa Road under hybrid annuity mode.
Ashoka Buildcon's stock declined as much as 3.54% to Rs 232.65 apiece on the NSE. It pared losses to trade 2.56% lower at Rs 235, as of 2:45 p.m. This compared to a 0.39% advance in the NSE Nifty 50 Index.
The stock has risen by 72.35% in the last 12 months. Total traded volume so far in the day stood at 1.2 times its 30-day average. The relative strength index was at 49.6.
Out of 11 analysts tracking the company, six maintain a 'buy' rating, four recommend a 'hold,' and one suggest 'sell,' according to Bloomberg data. The average of 12-month analyst' price target implies a potential upside of 14%.
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