Ashoka Buildcon Limited (ASHOKA) AI Stock Analysis

• Market Cap: ₹32.07B
• Dividend Yield: N/A
• Average Volume (3M): 62.37K
• Price to Earnings (P/E): 0.6
• Beta (1Y): 1.42
• Revenue Growth: -17.28%
• EPS Growth: 43.34%
• Country: IN
• Employees: 1,594
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 1.70
• 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): 6.56
• Revenue Forecast (FY): ₹64.13B

• Rating: 72 Outperform
• Price Target: ₹137.00 ▼(-17.47% Downside)
• Action: Upgraded Date: 03/05/26
• Date: Action: Upgraded 03/05/26

The score is driven primarily by strong financial performance (profitability and cash-flow strength with manageable leverage) and very low valuation (P/E 1.276). These positives are partially offset by weak technicals, with the stock in a clear downtrend and momentum indicators showing heavy selling pressure.

Positive Factors

Robust profit margins

Sustained high gross and net margins plus rising EBIT/EBITDA suggest durable execution strength and pricing power in EPC work. Over the next 2–6 months, healthy margins provide a buffer against input cost swings, support reinvestment into projects, and preserve cash available for operations and concessions.

Strong cash generation

Very strong cash conversion and large FCF growth indicate the business turns reported profits into real cash. This durable cash generation reduces reliance on external financing, funds working capital and capex needs for bids or O&M, and supports deleveraging or SPV investments over coming months.

Manageable leverage with high ROE

Moderate leverage combined with a very high ROE signals efficient use of capital to generate returns. This structural strength helps the firm finance project execution while maintaining capacity to take on new contracts, provided cash flows remain steady and debt terms are managed prudently.

Negative Factors

Weak recent revenue trend

A notable year-over-year revenue decline points to volatility in contract flows or project completions outpacing new awards. Persistent top-line weakness can erode fixed-cost coverage, strain margin sustainability, and reduce free cash generation if new contract inflows do not recover within several quarters.

Thin equity base

A relatively low equity ratio indicates limited loss-absorbing capacity and reliance on liability funding. Structurally, this raises vulnerability to cost overruns, delayed receipts from authorities, or concession shortfalls and could constrain bidding capacity or force expensive refinancing under stress.

Material exposure to PPP/concession risks

Significant revenue from PPP and toll/annuity models creates structural exposure to traffic volatility, collection efficiency, and counterparty/authority payment timing. These long-dated, project-specific risks can produce cash-flow swings and higher working-capital needs over multi-month horizons.

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

Financial fundamentals are strong: solid profitability (gross margin ~36.73%, net margin 16.88%) and improved operating efficiency (EBIT/EBITDA margin improvements). Cash generation is robust with free cash flow growth of 158.12% and strong cash conversion (OCF/NI 0.99; FCF/NI 0.92). Balance sheet is stable with manageable leverage (D/E 0.51), though the equity ratio (18.85%) suggests room to strengthen the capital base.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	88.21B	90.23B	97.98B	81.00B	59.99B	49.92B
Gross Profit	33.11B	36.86B	31.67B	25.39B	11.16B	14.93B
EBITDA	25.59B	30.49B	23.68B	19.83B	22.50B	13.41B
Net Income	13.82B	16.94B	5.03B	2.92B	7.79B	2.76B
Balance Sheet
Total Assets	191.89B	207.70B	191.24B	171.45B	154.65B	142.33B
Cash, Cash Equivalents and Short-Term Investments	15.44B	5.86B	9.17B	6.80B	4.04B	6.49B
Total Debt	19.89B	19.88B	54.50B	19.09B	36.33B	67.19B
Total Liabilities	147.13B	166.11B	167.00B	151.70B	138.65B	134.03B
Stockholders Equity	42.11B	39.15B	22.20B	17.55B	13.81B	6.19B
Cash Flow
Free Cash Flow	6.11B	15.55B	6.03B	3.13B	2.08B	696.53M
Operating Cash Flow	6.48B	16.73B	7.49B	4.92B	3.53B	1.55B
Investing Cash Flow	10.17B	-6.26B	2.34B	-2.64B	-2.33B	-1.76B
Financing Cash Flow	-8.39B	-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: Positive
• RSI: Positive
• STOCH: Positive

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 133.53, above the 50-day MA of 146.52, and below the 200-day MA of 181.27, indicating a bearish trend. The MACD of -9.27 indicates Positive momentum. The RSI at 23.18 is Positive, neither overbought nor oversold. The STOCH value of 19.87 is Positive, 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	72 Outperform	₹32.07B	0.56	―	―	-17.28%	43.34%
AHLUCONT	68 Neutral	₹48.93B	30.38	―	0.06%	5.56%	-22.59%
JKIL	67 Neutral	₹37.41B	13.34	―	0.67%	13.96%	12.91%
WELENT	63 Neutral	₹63.84B	74.06	―	0.58%	9.11%	16.30%
CAPACITE	60 Neutral	₹15.20B	10.65	―	―	15.23%	8.61%
PNCINFRA	57 Neutral	₹48.22B	21.04	―	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’s Acuite Credit Ratings Reaffirmed and Taken Off Watch

Ashoka Buildcon Limited announced that Acuite Ratings & Research has reaffirmed its credit ratings for both long-term and short-term debt, keeping the long-term rating at ACUITE AA with a stable outlook and the short-term rating at ACUITE A1+. The ratings have also been removed from Rating Watch, signaling greater clarity on the company’s credit profile and potentially supporting more stable funding conditions for its listed debt instruments.

The reaffirmation of strong investment-grade ratings, coupled with the removal from Rating Watch, suggests rating confidence in Ashoka Buildcon’s financial position and risk profile. This development may help the infrastructure player maintain competitive borrowing costs in the bond and commercial paper markets, which is critical for sustaining its project pipeline and reassuring investors and other stakeholders about its creditworthiness.

Ashoka Buildcon-Railtel Consortium Wins Rs 1,136 Crore Maharashtra IT Modernisation Mandate

Ashoka Buildcon Limited, in consortium with Railtel Corporation of India, has received a Letter of Intent from the Inspector General of Registration and Controller of Stamps, Maharashtra, to act as Managed Service Provider for a major IT modernization initiative. The turnkey project covers end-to-end modernization, operation, and maintenance of IT, network, cloud, and application infrastructure for registration offices across Maharashtra over five years, running until March 19, 2032, with an expected contract value of about Rs.1,136.18 crore based on historical document volumes, underscoring Ashoka Buildcon’s diversification into digital infrastructure services for state government operations.

Ashoka Buildcon Publishes Postal Ballot Dispatch Notice for Shareholders

Ashoka Buildcon Limited has notified stock exchanges that it has published newspaper advertisements regarding the dispatch of a Postal Ballot Notice to its shareholders, in compliance with disclosure requirements under SEBI’s Listing Obligations and Disclosure Requirements Regulations. The English and Marathi notices, carried in the Free Press Journal and Punyanagari respectively, indicate that the company is formally initiating a shareholder approval process via postal ballot, underscoring its adherence to regulatory norms and shareholder communication standards.

Ashoka Buildcon Posts Q3 FY26 Earnings Call Audio on Website

Ashoka Buildcon Limited has notified the stock exchanges that it has uploaded the audio recording of its result update and earnings call for the quarter and nine months ended December 31, 2025, covering its unaudited standalone and consolidated financial results. The recording for the Q3 FY26 earnings call, held on February 2, 2026, is now accessible to investors and stakeholders via the company’s website, enhancing transparency and facilitating broader access to management’s commentary on the company’s recent financial performance.

Ashoka Buildcon Publishes Unaudited Q3 and Nine-Month FY2025 Results in Newspapers

Ashoka Buildcon Limited has published its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, in the newspapers Free Press Journal and Punyanagari, in line with regulatory disclosure requirements. The company notified the stock exchanges that these results, which are part of its ongoing financial reporting and transparency obligations under SEBI’s Listing Regulations, are also available on its website, reinforcing compliance and access to information for investors and other stakeholders.

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.