Ashok Buildcon Limited incorporated in 1993 is engaged in the business of construction of infrastructure facilities on Engineering, Procurement and Construction Basis (EPC) and Built, Operate and Transfer (BOT) Basis and Sale of Ready-Mix Concrete. The company has also promoted Special Purpose Vehicles (SPVs) for some of its projects, wherein 'Toll Collection Rights' are received in exchange of the construction cost.

The company mainly four divisions, namely, the BOT division, the engineering, procurement, and construction (EPC) division, the RMC and bitumen division and the toll collection contract division.  In EPC Division, the company primarily engineers and designs, procures the raw material and equipment for and constructs roads and bridges for their BOT division and third parties. They also maintain and repair existing roads for its BOT division, constructs and modernizes power distribution networks, comprising distribution transformers and electricity substations, for third parties and constructs commercial, industrial and institutional buildings for third parties.

Its RMC and Bitumen Division sell ready-mix concrete and bitumen and supports the EPC division by ensuring that they have an adequate and timely supply of high-quality RMC and bitumen for which they have 14 RMC plants with a total production capacity of 650 cubic metres per hour and 86 concrete transit trucks and 19 concrete pumps. This division also sells and processes bitumen to a higher grade for use in road projects and supports their EPC division by supplying with bitumen with the help of one plant in Pune for the processing of bitumen with a capacity of 60 metric tons per day.

The company has also set up their toll collection contract division to leverage their experience of collecting tolls on their BOT projects and their proprietary computerized toll revenue auditing system. Company also has a subsidiary company named Unison Enviro Pvt. Ltd with 51% holding, is one of the leading infrastructure development companies in India with authorizations from PNGRB (Petroleum and Natural Gas Regulatory Board) to develop City Gas Distribution business in Ratnagiri district, Chitradurga & Davanagere districts and Latur & Osmanabad districts. The company is developing the gas distribution infrastructure for the supply of Piped Natural Gas (PNG) to domestic, commercial & industrial consumers and Compressed Natural Gas (CNG) for vehicles.

So far company has 45+ years of experience in Construction industry by constructing highways of 14000 Lane Kms., laying of 300+ kms of gas pipeline, 50,000+ Kms of Power lines Network and 300+ New Substations. Company has also constructed 10 + Mn. Sq. Ft. of buildings, laid 28000 Kms Optical Fibres line, 225+ TKms of Overhead Electrification and linked 66+ TKms of Railway Tracks across India. Company also has global presence through its projects in India, Maldives, Guyana, Benin and Bangladesh.

Signature Projects by the company:

• India’s First 8 Lane Extra Dosed Cable Stayed Bridge Built on Narmada River in Gujarat in 33 Months.
• Eastern Peripheral Expressway in Delhi completed in 482 working days along with Railway Over Bridge in 100 Working Days.

Order Book Positions:

Company’s current order book position as on 31^st Dec’ 23 stands at Rs. 14025 cr. which includes 1,188 Cr. worth of Projects of Road construction under HAM, 4,475 Cr. of Road construction projects under EPC, Rs. 5573 worth of Power T&D projects, 1,153 Cr. worth of Railways Projects, 746 Cr. Building construction projects and 32 Cr. worth of City Gas Distribution Projects.

Fundamentals (FY23-24):

Financial Results:

Company’s Net Sales was at Rs 2,657.12 crore in December 2023 up 35.83%, Quarterly Net Profit was at Rs. 107.30 crore in December 2023 down 21.16% and EBITDA stands at Rs. 638.80 crore in December 2023 up 20.49% as compared to September 2022. Company’s EPS has decreased to Rs. 3.82 in December 2023 from Rs. 4.85 in December 2022.

Latest Orders:

1. Company has recently received Letters of Award (LoA) from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for Development of Distribution Infrastructure in the state of Maharashtra for Osmanabad Circle for consideration of Rs. 125.39 cr.
2. Company has also bagged an order for construction of Cable Stayed Bridge from Government of Telangana, Roads and Building Departments in October 2023 for a total consideration of Rs. 146.02 cr.
3. Company also received the Certificate of CoD for HAM Project of NHAI for Four Laning Tumkur Shivamogga section in Karnataka (Package III) which was is executed by Ashoka Banwara Bettadahalli Road Private Limited (SPV). It is eligible for receipt of Annuity payments from NHAI for the operation period of 15 years at the interval of every 6 months from the date of achievement of CoD. The said SPV has also received a Provisional Certificate for completion of 39.05 KMs out of total Project stretch of 48.51 KMs.
4. It has also received Letter of Acceptance (LoA) from City & Industrial Development Corporation of Maharashtra Limited (CIDCO) for Design and construction of Stilt Bridge for Eastern Connectivity for Navi Mumbai International Airport (NMIA) in Joint Venture for total consideration of Rs. 662.55 cr.
5. Company has also received of Letter of Award for the project Six laning of Aurangabad to Bihar-Jharkhand Border (Chordaha), Section of NH-2 (PKG -1), in the state of Bihar under Bharatmala on EPC mode for a total consideration of Rs. 520 cr.

On Going Projects:

1. Six laning of Belgaum – Dharwad section of NH-4 from km 433.00 to km 515.00 (Length – 79.36 Km) in the state of Karnataka to be executed as BOT (Toll) project on DBFOT pattern under NHDP Phase – V (Package No.: NHDP – V/MC-II/19).
2. Four laning of Sambalpur-Baragarh-Orissa/Chhatisgarh Border section of NH-6 from km 0.00 to km 88.00 in the state of Orissa to be executed as BOT (Toll) project on DBFOT pattern under NHDP Phase III.
3. Six laning of Dhankuni- Kharagpur Section of NH-6 from Km 17.600 to Km 129.000 in the state of West Bengal to be executed as BOT (Toll) project on DBFOT pattern under NHDP Phase V.
4. Design, Engineering, Finance, Construction, Operation & Maintenance Chattisgarh / Maharashtra Border–Wainganga Bridge section from Km 405.000 to Km. 485.000 of NH-6 in the State of Maharashtra under NHDP Phase IIIA on Build, Operate and Transfer (BOT) Basis.
5. Development of Jaora-Nayagaon section from km. 125.00 to 252.81 on SH-31 to 4-Lane section in the State of Madhya Pradesh on BOT Basis. 
6. Construction of 6 lane Elevated Corridor along with development of existing 4 lane road at ground level from Aroor to Thuravoor Thekku section of NH 66 (from Km. 366+330 to Km.379+082 of NH-66) (Length 12.752 Km) in Kerala at cost of 16685 million.
7. East Bank – East Coast Road Linkage Project (Ogle to Haags Bosch, Eccles) in Guyana, South America at project cost of 8,471.86 million.
8. Construction of 6 laning from Belgaum to Sankeshwar bypass from km 515+000 to km 555+017 of NH-48 in the state of Karnataka on EPC mode under Bharatmala pariyojana at cost of 8,294.90 million.
9. Construction of Bridge comprising 300 mts Cable Stayed Bridge and 390 mts Viaduct with Box type Super Structure and its approaches at km. 57/150 – Km. 58/400 on Suryapet - Aswaraopet road in Khammam town limits in the State of Telangana on EPC Mode with Road Development & Building Department, Government of Telangana at cost of 1,460 million.
10. Company also has 3 ongoing projects for Rural Electrification of total 300 Localites by Centralized Network in Republic of BENIN at a total cost of approximately 150 cr.
11. In Power T&D and Solar Projects segment company has 7 ongoing projects in Maharashtra, 4 in Bihar, 4 in U.P., 1 in Chattisgarh, 3 in Assam, 4 in MP and 3 in Rajasthan.
12. Company has also undertaken the Design and Construction of 2000 Social housing units in Hulhumale, Maldives and Design and Constructions of Police Stations, Accommodations and Custody Facilities in Dhoonidhoo Island, Maldives.  

In last 3 Years the stock gave a return of 44.03% as compared to the rise of Sensex and Nifty in the same period.

India is marching towards becoming 3^rd Largest economy in the world and one of the the backbone of that target is Infrastructural in India in variuos sectors such as Housing, Commercial, Roads, Railways, Airports and Tourist places. Ashoka Buildcon having 45+ years of experience and proven track record of projects delivered by it to Government and Private entities in various sectors is well poised to gain benefits of Infrastructural growth in India. Considering company’s years of experience, global and domestic presence, order book positions and growth of Infrastrucural sector in upcoming years, investors can invest in this company for long term period.

HET ZAVERI

info@smartinvestment.in​

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