AFCONS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | AFCONS | Market Cap | 12,494 Cr. | Current Price | 340 ₹ | High / Low | 479 ₹ |
| Stock P/E | 21.2 | Book Value | 134 ₹ | Dividend Yield | 0.74 % | ROCE | 22.5 % |
| ROE | 14.9 % | Face Value | 10.0 ₹ | DMA 50 | 316 ₹ | DMA 200 | 369 ₹ |
| Chg in FII Hold | -0.62 % | Chg in DII Hold | 1.36 % | PAT Qtr | 166 Cr. | PAT Prev Qtr | 112 Cr. |
| RSI | 60.9 | MACD | 9.10 | Volume | 13,68,226 | Avg Vol 1Wk | 10,31,174 |
| Low price | 266 ₹ | High price | 479 ₹ | PEG Ratio | 0.69 | Debt to equity | 0.73 |
| 52w Index | 34.6 % | Qtr Profit Var | -0.17 % | EPS | 14.4 ₹ | Industry PE | 18.5 |
📊 Financials: AFCONS shows strong fundamentals with ROCE at 22.5% and ROE at 14.9%, reflecting efficient capital usage. Debt-to-equity ratio of 0.73 is manageable but adds moderate risk. PAT improved from ₹112 Cr. to ₹166 Cr., highlighting earnings growth. EPS of ₹14.4 supports profitability consistency.
💹 Valuation: Current P/E of 21.2 is slightly above industry average (18.5), suggesting moderate overvaluation. PEG ratio of 0.69 indicates fair valuation relative to growth. P/B ratio (~2.5) is reasonable compared to book value ₹134, offering balance between price and intrinsic value.
🏢 Business Model: AFCONS operates in infrastructure and construction, benefiting from government spending and sector growth. Competitive advantage lies in execution scale and project pipeline. Strong fundamentals support long-term sustainability, though debt levels require monitoring.
📈 Entry Zone: Ideal accumulation range lies between ₹320–335, near DMA 50 support (₹316). Current price ₹340 is close to fair entry zone, offering reasonable risk-reward.
📌 Long-Term Holding: Suitable for medium-to-long term investors (2–4 years). Strong ROCE and earnings growth support holding, with partial profit booking recommended near ₹420–450 resistance.
Positive
- Strong ROCE (22.5%) and decent ROE (14.9%)
- Quarterly PAT growth from ₹112 Cr. to ₹166 Cr.
- PEG ratio of 0.69 indicates fair valuation
- DII holdings increased (+1.36%), showing domestic confidence
Limitation
- Debt-to-equity ratio of 0.73 adds financial risk
- ROE (14.9%) is moderate compared to top peers
- Dividend yield of 0.74% is modest
- Quarterly profit variation (-0.17%) shows inconsistency
Company Negative News
- FII holdings decreased (-0.62%), reflecting foreign investor caution
- Debt levels remain a concern
Company Positive News
- PAT growth highlights strong quarterly improvement
- MACD (9.10) and RSI (60.9) indicate bullish momentum
- Trading volumes above average show investor interest
Industry
- Industry P/E at 18.5, slightly lower than company’s valuation
- Sector supported by infrastructure demand and government initiatives
Conclusion
AFCONS is a fundamentally strong candidate with efficient capital usage and earnings growth. Entry is recommended near ₹320–335 for better margin of safety. Long-term investors can hold with a 2–4 year horizon, booking partial profits near ₹420–450 resistance levels.