AFCONS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | AFCONS | Market Cap | 12,437 Cr. | Current Price | 338 ₹ | High / Low | 499 ₹ |
| Stock P/E | 21.1 | Book Value | 134 ₹ | Dividend Yield | 0.74 % | ROCE | 22.5 % |
| ROE | 14.9 % | Face Value | 10.0 ₹ | DMA 50 | 374 ₹ | DMA 200 | 417 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 1.66 % | PAT Qtr | 112 Cr. | PAT Prev Qtr | 136 Cr. |
| RSI | 25.8 | MACD | -14.2 | Volume | 2,63,310 | Avg Vol 1Wk | 5,61,442 |
| Low price | 319 ₹ | High price | 499 ₹ | PEG Ratio | 0.68 | Debt to equity | 0.73 |
| 52w Index | 10.7 % | Qtr Profit Var | -20.2 % | EPS | 16.0 ₹ | Industry PE | 16.9 |
📊 Financials: AFCONS shows strong operational efficiency with ROCE at 22.5% and ROE at 14.9%. However, quarterly PAT declined from ₹136 Cr. to ₹112 Cr., reflecting short-term earnings pressure. Debt-to-equity at 0.73 indicates moderate leverage. EPS of ₹16.0 is healthy, supported by a market cap of ₹12,437 Cr.
💹 Valuation: The stock trades at a P/E of 21.1, slightly above the industry average of 16.9, suggesting mild overvaluation. P/B ratio is ~2.5 (338/134), which is reasonable. PEG ratio of 0.68 indicates fair growth potential. Dividend yield of 0.74% provides modest income support.
🏢 Business Model & Competitive Advantage: AFCONS operates in infrastructure and construction, benefiting from government spending on roads, ports, and urban projects. Its competitive advantage lies in execution capabilities and a strong project pipeline. However, earnings volatility due to project cycles remains a challenge.
📈 Entry Zone: Technicals show RSI at 25.8 (oversold) and MACD negative, with price below DMA 50 & 200. Accumulation is favorable near ₹320–340. Long-term investors may hold for compounding returns, as fundamentals remain strong despite short-term weakness.
Positive
- Strong ROCE (22.5%) and ROE (14.9%).
- Reasonable P/B ratio (~2.5).
- Dividend yield of 0.74% adds investor appeal.
Limitation
- Quarterly PAT decline (-20.2%) indicates earnings pressure.
- Debt-to-equity ratio at 0.73 shows moderate leverage risk.
- Stock trading below DMA 200, reflecting weak momentum.
Company Negative News
- Quarterly profit decline from ₹136 Cr. to ₹112 Cr.
- Weak technical indicators (RSI oversold, MACD negative).
Company Positive News
- DII holdings increased by 1.66%, showing domestic institutional confidence.
- Strong industry demand for infrastructure projects supports long-term growth.
Industry
- Infrastructure sector benefits from government spending and urbanization.
- Industry P/E at 16.9 is lower than AFCONS, indicating sector-wide value opportunities.
- Strong demand for roads, ports, and construction projects sustains growth outlook.
Conclusion
🔎 AFCONS is fundamentally strong with efficient capital use and reasonable valuations. Short-term earnings pressure and moderate leverage are concerns, but industry tailwinds support long-term growth. Entry near ₹320–340 is attractive for investors, with potential for steady compounding returns over the long horizon.