One of the small-cap stocks that operates in infrastructure engineering and construction. The stock has jumped by 2.86 percent after a joint venture with Hindustan Projects received an order worth Rs. 504 crore for the Water Supply Project.
Stock movement:
With a market capitalization of Rs. 19,345.47 crore, the share of Afcons Infrastructure Limited has reached an intraday high of Rs. 539.60 per equity share, rising nearly around 2.86 percent from its previous day’s close price of Rs. 524.60. Since then, the stock has retreated and is currently trading at Rs. 525.80 per equity share.
What Happened:
Afcons Infrastructure Limited, in joint venture with Hindustan Projects, has been declared the lowest bidder (L1) for the Water Supply Project under the Jal Jeevan Mission in Dungarpur, Rajasthan.
The project was worth Rs. 503.86 crore and involves the development of intake wells, water treatment plants, and transmission systems, with a 10-year O&M contract post-completion.
Infrastructure Excellence
Afcons Infrastructure excels in various sectors, including marine infrastructure (ranked 6th globally in ports), transportation (highways, bridges, metro systems, ranked 21st globally in bridges), oil and gas (offshore and onshore projects), and urban infrastructure (tunnels, roads, civil engineering), demonstrating its global expertise and engineering excellence.
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Financial results and ratios:
Afcons Infrastructure Limited’s revenue has increased from Rs. 12,637 crore in FY23 to Rs. 13,268 crore in FY24, which has grown by 4.99 percent YOY. The net profit of Afcons Infrastructure Limited has also grown by 9.49 percent from Rs. 411 crore in FY23 to Rs. 450 crore in FY24.
Afcons Infrastructure Limited’s revenue and net profit have grown at a CAGR of 7.50 percent and 16.06 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 23.1 percent and 14.5 percent, respectively. The debt-to-equity ratio of the company is to be 0.94x. Afcons Infrastructure Limited’s EPS is to be Rs. 13.2.
Shareholding Pattern:
As of November 2024, Afcons Infrastructure Limited’s ownership is distributed with 50.17% held by promoters, 8.20% by foreign institutional investors, 13.24% by domestic institutional investors, and 28.38% by the public.
Company Overview:
Afcons Infrastructure Limited was established in 1959 and is a leading Indian multinational construction and engineering company headquartered in Mumbai, Maharashtra. It is renowned for executing complex infrastructure projects across various sectors.
Written By – Nikhil Naik
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