Key Points
- Afcons shares opened at an 8% discount from the IPO price.
- Intra-day high reached ₹477.50.
- The order book is valued at ₹45,000 crore.
- Recent contract win includes the Bhopal Metro’s 13 km Blue Line project.
- Revenue growth is projected at 15% over the next three years.
- EBITDA margin expected to stay above 11%.
Looma News
Afcons Infrastructure, part of the Shapoorji Pallonji group, started trading at ₹426, which is an 8% discount to its IPO price of ₹463. The stock then jumped to an intra-day high of ₹477.50, showing strong interest from investors.
Afcons has a large order book worth around ₹45,000 crore. Managing Director Paramasivan Srinivasan mentioned that they were the lowest bidders for projects totaling ₹9,000 crore and have won projects worth ₹11,000 crore this year. Last week, they secured the contract for the 13 km Blue Line of the Bhopal Metro, bidding ₹1,006.74 crore for a three-year project.
Srinivasan noted that revenue growth for the current fiscal year might be flat due to a slowdown in project activity, but he expects growth to pick up, aiming for a 15% growth rate over the next three years. The company has seen an 18.5% revenue growth rate over the last decade, and its EBITDA margin is expected to stay above 11%.
Additionally, the company’s overseas projects, which usually have higher margins compared to domestic ones, have dropped below 30%. Srinivasan wants to bring this back to the historical level of 30%. He emphasized the company’s strategy to focus on complex projects with less competition. As of 2:27 PM, Afcons shares were trading at ₹473.25 on the NSE.
