Ashoka Buildcon Limited (ASHOKA) AI Stock Analysis

• Market Cap: ₹41.77B
• Dividend Yield: N/A
• Average Volume (3M): 62.37K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 1.44
• Revenue Growth: -17.28%
• EPS Growth: 43.34%
• Country: IN
• Employees: 1,594
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 3.00
• Shares Outstanding: 280,723,240
• 10 Day Avg. Volume: 52,979
• 30 Day Avg. Volume: 62,370
• PEG Ratio: 0.01
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 3.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹163.00 ▼(-1.81% Downside)

Ashoka Buildcon Limited's strong financial performance and attractive valuation are significant positives, suggesting potential for future growth. However, bearish technical indicators indicate current market challenges, which weigh on the overall score.

Positive Factors

Strong free cash flow growth

Very strong FCF growth and near-1.0 cash conversion indicate durable cash generation from core operations. This supports capex, concession funding, debt servicing and cushions cyclical revenue swings, improving financial flexibility over the next 2–6 months.

High and sustainable operating margins

Robust gross and EBITDA margins signal strong execution and cost management in EPC projects. High operating margins create a structural buffer versus input-cost inflation and support cash flows across project cycles, enhancing long-run profitability resilience.

Manageable leverage with strong ROE

Modest leverage plus very high ROE suggests effective capital deployment and controlled debt levels. This balance supports ability to bid on new contracts and fund concession SPVs without excessive refinancing risk, strengthening medium-term strategic options.

Negative Factors

Recent revenue contraction

A significant year-on-year revenue decline signals project timing, award cadence or execution gaps. Reduced revenue scale can erode operating leverage, stress working capital and slow backlog monetization, posing a durable headwind for earnings visibility over coming months.

Low equity ratio limits capital buffer

A sub-20% equity ratio indicates limited shareholder capital relative to assets, increasing reliance on debt and project financing. That reduces resilience to large cost overruns or delayed receipts and can constrain ability to absorb shocks in capital-intensive infrastructure projects.

Concentration in government/PPP projects

Heavy dependence on government contracts and PPP concessions exposes cash flows to slow receivables, certification delays and traffic/annuity variability. These structural exposures increase working-capital needs and require sustained contract management to protect long-term cash generation.

Ashoka Buildcon Limited Business Overview & Revenue Model

Company Description

Ashoka Buildcon Limited operates as an infrastructure development company in India. The company operates through three segments: Construction & Contract Related Activity; Built, Operate and Transfer (BOT); and Sale of Goods. It engages in the construction of infrastructure facilities on engineering, procurement, and construction basis, as well as built, operate, and transfer basis. The company undertakes various projects, such as highways, bridges, power projects, buildings, city gas distribution projects, and railways. It also sells ready mix concrete and real estate properties. In addition, the company develops software for educational institutions; distributes gas; and provides consultancy services. Ashoka Buildcon Limited was founded in 1976 and is based in Nashik, India.

How the Company Makes Money

Ashoka Buildcon Limited generates revenue primarily through its construction contracts, which include the development of national highways, state highways, and urban infrastructure projects. The company operates under several revenue streams, including engineering, procurement, and construction (EPC) contracts, where it undertakes the complete responsibility for project execution. Additionally, ASHOKA is involved in public-private partnership (PPP) projects, allowing it to collaborate with government entities to deliver infrastructure projects with a shared investment model. The company also earns revenue from operations in the power sector, particularly through the construction of power transmission lines and substations. Significant partnerships with government bodies, private developers, and financial institutions further bolster ASHOKA's earnings, enabling it to secure ongoing and new project contracts that drive growth.

Ashoka Buildcon Limited Financial Statement Overview

Summary

Ashoka Buildcon Limited displays solid financial health with strong revenue and profit growth, effective cost management, and robust cash flow generation. The company's leverage is under control, but enhancing equity could further strengthen its financial position.

Income Statement

Ashoka Buildcon Limited has demonstrated strong revenue growth with a 2.48% increase in Total Revenue over the past year. The company maintains a healthy Gross Profit Margin of approximately 36.73% and a Net Profit Margin of 16.88%, indicating robust profitability. Significant improvements in EBIT and EBITDA margins to 32.29% and 29.09% respectively highlight efficient operational performance.

Balance Sheet

The company exhibits a stable financial structure with a Debt-to-Equity Ratio of 0.51, indicating manageable leverage. Return on Equity stands at a strong 43.29%, suggesting effective use of equity to generate profits. The Equity Ratio is 18.85%, reflecting a balanced capital structure, though there is potential for increased equity to improve financial stability.

Cash Flow

Strong Free Cash Flow Growth of 158.12% signifies improved cash generation capability. The Operating Cash Flow to Net Income Ratio is at 0.99, reflecting efficient cash conversion from earnings. Additionally, the Free Cash Flow to Net Income Ratio of 0.92 suggests a healthy ability to generate cash relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	94.58B	90.23B	97.98B	81.00B	59.99B	49.92B
Gross Profit	36.75B	36.86B	31.67B	25.39B	11.16B	14.93B
EBITDA	30.82B	30.49B	23.68B	19.83B	22.50B	13.41B
Net Income	17.61B	16.94B	5.03B	2.92B	7.79B	2.76B
Balance Sheet
Total Assets	0.00	207.70B	191.24B	171.45B	154.65B	142.33B
Cash, Cash Equivalents and Short-Term Investments	5.86B	5.86B	9.17B	6.80B	4.04B	6.49B
Total Debt	0.00	19.88B	54.50B	19.09B	36.33B	67.19B
Total Liabilities	-41.59B	166.11B	167.00B	151.70B	138.65B	134.03B
Stockholders Equity	41.59B	39.15B	22.20B	17.55B	13.81B	6.19B
Cash Flow
Free Cash Flow	0.00	15.55B	6.03B	3.13B	2.08B	696.53M
Operating Cash Flow	0.00	16.73B	7.49B	4.92B	3.53B	1.55B
Investing Cash Flow	0.00	-6.26B	2.34B	-2.64B	-2.33B	-1.76B
Financing Cash Flow	0.00	-10.52B	-4.07B	-3.11B	-350.01M	-2.21B

Ashoka Buildcon Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 166.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASHOKA, the sentiment is Negative. The current price of 166 is above the 20-day moving average (MA) of 151.68, above the 50-day MA of 163.36, and below the 200-day MA of 188.41, indicating a bearish trend. The MACD of -6.07 indicates Negative momentum. The RSI at 41.92 is Neutral, neither overbought nor oversold. The STOCH value of 55.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ASHOKA.

Ashoka Buildcon Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASHOKA	69 Neutral	₹41.77B	1.47	―	―	-17.28%	43.34%
AHLUCONT	68 Neutral	₹58.27B	22.19	―	0.06%	5.56%	-22.59%
JKIL	67 Neutral	₹43.09B	10.56	―	0.67%	13.96%	12.91%
CAPACITE	64 Neutral	₹18.78B	9.40	―	―	15.23%	8.61%
WELENT	63 Neutral	₹65.71B	18.77	―	0.58%	9.11%	16.30%
PNCINFRA	57 Neutral	₹55.60B	6.92	―	0.23%	-30.54%	-35.13%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Ashoka Buildcon Limited Corporate Events

Ashoka Buildcon Posts Lower Q3 Revenue but Nearly Doubles Nine-Month Profit, Backed by Rs 15,927-Crore Order Book

Ashoka Buildcon reported a year-on-year decline in standalone revenue for the quarter and nine months ended 31 December 2025, with total income down 18% in Q3 FY26 to Rs 1,491.9 crore and 20% for the nine-month period to Rs 4,133.6 crore, while EBITDA also fell but margins improved slightly. Despite lower revenues and a drop in profit before tax, profit after tax rose sharply—up 68% in the quarter to Rs 101.8 crore and 97% for the nine months to Rs 271.6 crore—suggesting beneficial one-off or below-the-line effects, alongside a manageable standalone debt profile of Rs 1,046 crore and consolidated debt of Rs 2,718 crore. The company’s order book stood at Rs 15,927 crore as of 31 December 2025, heavily weighted towards road EPC and power T&D, underpinning medium-term revenue visibility even as near-term financial performance reflects a softer execution cycle.

Ashoka Buildcon Receives Independent ESG Rating of 72.2 from SES ESG

Ashoka Buildcon Limited has received an environmental, social and governance (ESG) rating of 72.2 from SES ESG Research Private Limited, indicating an externally assessed performance on sustainability parameters based solely on publicly available information. The company clarified that it did not commission or engage SES ESG for this evaluation, underscoring that the rating is an independent assessment that may influence investor perception and transparency around Ashoka Buildcon’s ESG profile without imposing additional disclosure obligations on the firm’s operations.

CARE Reaffirms Ashoka Buildcon’s AA- and A1+ Ratings With Positive Outlook

CARE Ratings has reaffirmed Ashoka Buildcon Limited’s credit ratings for both its long-term and short-term debt, maintaining them at ‘CARE AA-’ and ‘CARE A1+’ respectively, each under Rating Watch with Positive Implications. The reaffirmation and positive watch signal continued confidence in the company’s credit profile and prospects, which may support its borrowing capacity and financing costs as it pursues ongoing and future infrastructure projects.

Ashoka Buildcon Secures Major BMC Flyover Project

Ashoka Buildcon Limited has announced the receipt of a Letter of Acceptance for a significant project awarded by the Brihanmumbai Municipal Corporation (BMC). The project involves the construction of a flyover connecting J.J. Bridge and Sitaram Selam Bridge in Mumbai, valued at Rs.1,041.44 Crore including GST. This development is expected to enhance Ashoka Buildcon’s portfolio in urban infrastructure, potentially strengthening its market position in the construction industry.

Ashoka Buildcon Secures Additional Work Order from BMC

Ashoka Buildcon Limited has received a work order from the Brihanmumbai Municipal Corporation (BMC) for additional work on an existing flyover project at the Sion Panvel Highway in Maharashtra. The additional scope of work is valued at Rs.447.21 Crore, bringing the total project cost to Rs.1,573.79 Crore. This expansion reflects Ashoka Buildcon’s strong position in the infrastructure sector and is expected to enhance its operational capabilities and market presence.

Ashoka Buildcon Acquires Full Stake in Ashoka Concessions Limited

Ashoka Buildcon Limited has announced the acquisition of all securities held by Macquarie SBI Infrastructure Investments Pte Limited and SBI Macquarie Infrastructure Trust in Ashoka Concessions Limited (ACL), making ACL a wholly owned subsidiary. This strategic move, completed for an aggregate consideration of Rs.667 crore, allows Ashoka Buildcon to consolidate its control over ACL, enhancing its operational capabilities and potentially strengthening its position in the infrastructure sector.

Ashoka Buildcon Releases Q2 FY26 Earnings Call Recording

Ashoka Buildcon Limited has made available the audio recording of its earnings call for the quarter and half-year ending September 30, 2025, on their website. This release provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting investor confidence and market positioning.

Ashoka Buildcon Releases Q2FY26 Financial Results

Ashoka Buildcon Limited has announced the publication of its unaudited standalone and consolidated financial results for the quarter and half-year ending on September 30, 2025. The results have been published in the ‘Free Press Journal’ and ‘Deshdoot’ newspapers. This disclosure is part of the company’s compliance with SEBI regulations, reflecting its commitment to transparency and regulatory adherence, which could reinforce stakeholder confidence in its financial management and operational integrity.