Nuvama has initiated coverage on Afcons with a ‘buy’ rating, setting a target price of ₹535 per share, implying a 22.7% upside from the current market price (CMP) of ₹436.00.
The brokerage highlighted Afcons’ six-decade legacy in executing large and technically complex infrastructure EPC projects, along with its diversified geographical and segmental exposure.
Key factors behind the bullish outlook:
- Efficient working capital management, enabling self-funded growth through internal accruals.
- Revenue and gross block grew 3.7–3.8x over FY14-24, while net debt-to-equity ratio halved.
- Strong historical performance, with an order book/revenue/PAT CAGR of 16%/18%/29% over FY06-24.
- Current book-to-bill ratio of 3.8x, supporting an EBITDA and PAT CAGR of 17% and 22%, respectively, over FY25-27.
Nuvama believes Afcons’ robust order book and financial discipline position it well for sustained growth, making it an attractive investment opportunity.
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