Good news for Ashoka Buildcon investors
Ashoka Buildcon hit a high of Rs 98.75 which is 11% rise from the previous dayclose.
Fundamental analysis-wise, the same has been attributed to thecompany winning an order worth more than Rs 333 crore from Gujarat RailInfrastructure Development Corp (G-RIDE) and receiving the letter of award (LOA)claiming the same.
The company disclosed this price-sensitive information in afiling to the stock exchanges of India claiming, "The LOA is for theproject 'Gauge conversion of Bechraji (63.83 KM) - Ranuj (101.983 KM) Section,total length of 38.1 km metre gauge to broad gauge with 25 KV ACelectrification in Ahmedabad. The accepted project cost is Rs 333.625 crore."
What about the sector?
However, the entire sector and this particular company’sshares appear to be in a downtrend from some months.
The shares of roads and highways construction company haveunderperformed the stock market by declining more than 10% when the benchmarkindex of Sensex has fallen 2.7%.
Future outlook
Could this award of project to Ashoka Buidlcon indicate a turnin the sector, like the beating of the pandemic Corona virus is at its end?
The coming trading days and weeks will tell the investors iftheir investments in this company and more companies of this sector will beworthwhile or not.