Shares of this company engaged in the construction of roads fell around 2 percent in Monday’s trading session despite receiving an order worth Rs. 33.93 crores from the National Highway Authority of India. The shares were listed on the NSE SME platform with a premium of 5.3 percent on 19 March 2024.
With a market capitalization of Rs. 191 crores, the shares of AVP Infracon Ltd started Monday’s trading session on a higher note at Rs. 80.80, also recorded as the company’s fresh 52-week high compared to its previous close of Rs. 77.50. During the trading session, the shares hit a low of Rs. 75.55, making a loss of around 2 percent and are currently trading at Rs. 76 apiece.
According to the exchange filing, the company received a Letter of Acceptance (LoA) from the National Highway Authority of India for Strengthening/Overlay of the Thirumayam-Manamadurai section in the State of Tamil Nadu on an item rate basis worth Rs. 33.93 crores.
Coming onto the company’s financial statements, the revenue zoomed by 67 percent from Rs. 64 crores during FY21-22 to Rs. 106 crores in FY22-23. In addition, the net profits magnified by 200 percent from Rs. 4 crores to Rs. 12 crores during the same period.
Furthermore, the main objective of the company is to invest Rs. 15 crores in purchasing capital equipment like road laying, loading, batching plant, and material handling equipment. Additionally, AVP Infracon plans to allocate Rs. 35 crores for working capital needs from the funds raised through IPO.
As of October 2023, the company has a current ratio of 1.40 times which shows a stable liquidity position and there was a significant drop in the inventory turnover ratio to 1.02 times suggesting potential inefficiencies in managing inventory or sales slowdowns.
Headquartered in Chennai, AVP Infracon was incorporated in 2009. The company is engaged in the construction of road projects based on the Bill of Quantities (BOQ) and Engineering, Procurement, and Construction (EPC).
Written By Vaibhav Patil
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