Ashoka Buildcon Ltd.ASHOKA₹223.32 +2.07%

Shares of Ashoka Buildcon Ltd. surged, reaching an intraday high of ₹230.80, after the company announced the receipt of an order from the Maharashtra Motor Vehicles Department.

In a major infrastructure and technology deployment initiative, the Motor Vehicles Department, Government of Maharashtra, has awarded a large-scale contract to design, implement, operate, and maintain Intelligent Traffic Management Systems (ITMS) across five major regions of the state. The project spans Nagpur, Mumbai, Pune, Konkan & Western Maharashtra, and Marathwada, and will be executed over a period of more than a decade.

Project Scope: Multi-Region Intelligent Traffic Overhaul

The order covers the comprehensive deployment of Intelligent Traffic Management Systems across Maharashtra’s key urban and vulnerable areas. Specifically, it includes:

  • ITMS implementation across various stretches in Nagpur, Mumbai, and Pune circles
  • ITMS implementation at blackspots and vulnerable locations in Konkan & Western Maharashtra and Marathwada circles

Each of these projects will involve full-scale design, integration, operation, and maintenance of the traffic system infrastructure for 10 years post-implementation.

Execution Timeline and Financial Scope

The contract is structured in two phases – the Project implementation period of 15 months from the date of contract signing and the Operation and maintenance period of 10 years from the Go Live date.

The estimated cost of the project, as detailed in the Request for Proposal (RFP) including GST, is broken down as follows:

  • Nagpur Circle – ₹179.97 crore
  • Mumbai Circle – ₹291.49 crore
  • Pune Circle – ₹285.23 crore
  • Konkan & Western Maharashtra – ₹315.54 crore
  • Marathwada Circle – ₹314.96 crore

This brings the total indicative project value to around ₹1,387 crore, although the final value will be confirmed once the Work Order (WO) is issued.

Strategic Significance

This order marks a significant step in Maharashtra’s push for modern, tech-enabled traffic governance. By targeting accident-prone zones and key urban corridors, the initiative is expected to enhance road safety, reduce congestion, and support real-time enforcement.

For the company, this is a marquee project in the urban mobility space and aligns with India’s broader push towards smart city infrastructure and digital public services

Over the last three years, this stock has given multibagger returns of more than 160%. Let’s take a look at its Factor Analysis scores:

Note: The stock price mentioned is as of 1:45 PM.

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