AshokaBuildcon Ltd

It is a Fortune India-500 company and one of the leading highway developers in India. The company is an integrated EPC, BOT and HAM player. The company has several prestigious projects to its credit like India’s First 8 Lane Extra Dosed Cable Stayed Bridge built across Narmada River in Gujarat in 33 Months. The total EPC order book of the company is now close to Rs20,000 crore. The improvement in the overall business environment also helped the company in monetizing some of its assets. Five SPVs, namely, Ashoka Highways (Bhandara) Limited, Ashoka Highways (Durg) Limited, Ashoka Belgaum DharwadTollway Limited, AshokaSambalpurBaragarhTollway Limited and AshokaDhankuniKharagpurTollway Limited were sold to Galaxy Investments II Pte. Ltd. (KKR owned entity) for an aggregate consideration of Rs1,337 crore. The company will remain with following major projects in highway portfolio: 74 per cent equity stake in one toll project Jaora-Nayagaon in the state of Madhya Pradesh; Four (4) annuity projects which include 50 per cent equity stake in Chennai ORR and three fully owned projects HungundTalikot, Bagewadi–Saundatti, and Mudhol-Nipani; and Fully owned portfolio of 11 HAM projects. Gross Toll collections are now over Rs1,155 crore and are expected to cross Rs1,500 crore in next few quarters. In the Fiscal 2023, the company witnessed a steady improvement in the operating environment, coupled with a robust increase in operating revenue, both sequentially, as well as on a year-on-year basis. With surging order book and reduction in debt, the company is good investment bet with medium term price target of Rs150.