Ashoka Buildcon shares rally 10% after securing Rs 602 crore order from RVNL

Ashoka Buildcon shares jumped 10.44% to Rs 124.40 during Monday’s trading session after the company announced that it had received a Letter of Acceptance (LOA) from Rail Vikas Nigam Limited (RVNL) for a major infrastructure project in Uttarakhand.

The order, valued at Rs 602.16 crore, including GST, involves the supply, erection, testing and commissioning of electro-mechanical systems for four railway tunnels under the Rishikesh-Karnprayag New Broad Gauge Rail Line Project.

According to the company’s exchange filing, Ashoka Buildcon had earlier submitted its bid for Package-3, covering Tunnel T-13, T-14, T-15 and T-16 under Package E-4 of the project.

The Rs 602.16 crore order involves the execution of a broad range of electro-mechanical works for four railway tunnels under the Rishikesh-Karnprayag New Broad Gauge Rail Line Project in Uttarakhand.

As part of the contract, Ashoka Buildcon will undertake the supply, erection, testing and commissioning of 33/11 kV and 11/0.433 kV GIS substations, HT and LT cables, diesel generator (DG) sets, lighting systems, UPS systems, ventilation systems and fire-fighting systems, along with other associated works required for the tunnels.

The contract has been awarded by Rail Vikas Nigam Limited (RVNL) through a Letter of Acceptance (LOA) dated August 28, 2026.

Ashoka Buildcon said the project is scheduled to be completed within 30 months from the date of commencement. Under the contract, the company is also required to submit a performance bank guarantee of Rs 25.51 crore to RVNL. The project carries a defect liability period of two years.

The order has been awarded by a domestic entity and does not constitute a related-party transaction. The company also stated that its promoter/promoter group has no interest in the awarding entity.

The sizeable order win provides a fresh boost to Ashoka Buildcon’s order book and puts the infrastructure company in focus amid continued spending on India’s railway and transportation infrastructure.

The company also informed exchanges that the trading window for designated persons and their immediate relatives will remain closed until 48 hours after the disclosure is made to the stock exchanges.

Stock performance and technical indicators

Ashoka Buildcon shares rallied more than 10% during the trading session, hitting an intraday high of Rs 125.37. Despite the sharp uptick, the stock continues to trade well below its 52-week high of Rs 214.50. At the current market price, the company commands a market capitalisation of around Rs 3,170 crore.

From a technical perspective, the stock’s 14-day Relative Strength Index (RSI) stands at 34.5. While an RSI below 30 is generally considered to indicate oversold territory and a reading above 70 signals overbought conditions, the current reading suggests the stock is approaching the oversold zone without entering it.

The technical setup also remains relatively encouraging, with Ashoka Buildcon trading above six of its eight key Simple Moving Averages (SMAs). This indicates that the recent price momentum has strengthened across several time frames and could keep the stock on investors’ radar.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)