Afcons Infrastructure shares surge 5% to record high as Investec initiates with 'buy'

Afcons Infrastructure shares have rallied 17 percent in the past month.

Shares of newly listed Afcons Infrastructure gained 5 percent to Rs 568 to hit a fresh record high on December 17, extending gains for a second trading session in a row after Investec initiated coverage with a 'buy' call and assigned a price target for the stock.

With a price target of Rs 630, the brokerage anticipates an upside potential of 17 percent from the last closing price of Rs 540 on the National Stock Exchange. Afcons Infrastructure shares have rallied 17 percent in the past month.

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The brokerage highlights Afcons as one of the most diversified mid-sized EPC companies in India, noting its stable financial performance, consistent margins, and a strong balance sheet.

Investec further points out that with the easing of bank guarantee constraints, Afcons has witnessed a sharp surge in order inflows during the first eight months of FY25. The healthy order pipeline is expected to sustain momentum, offering strong revenue visibility and EBITDA/PAT growth potential for FY26E-27E.

Analysts at the firm see Afcons as an excellent play on the government capex cycle.

On December 16, shares of the company hit a new 52-week high after the company received a Letter of Acceptance (LOA) from Madhya Pradesh Metro Rail Co for Bhopal Metro Rail Project. The project includes the design and construction of an elevated Viaduct, thirteen elevated metro stations which will connect Bhadbhada Chauraha to Ratnagiri Tiraha and access to Depot for the Bhopal Metro Rail Project. The said project cost is Rs 1,006.74 crore and is to be completed in 36 months.

Earlier this month, the company completed the longest tunnelling drive between the Tughlakabad Airforce Launching Shaft and Maa Anandmayee Marg Station on the Tughlakabad-Aerocity corridor of Delhi Metro Phase IV.

At about 9:30 am, shares of the company were trading at Rs 553, higher by 2.4 percent from the last close on the NSE.

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