Afcons Infrastructure Share Price Surges As Investec Initiates Coverage With A 'Buy'

Afcons Infrastructure's stock surged over 5% following a positive outlook from Investec, which initiated coverage with a "Buy" recommendation. The brokerage highlighted Afcons’ robust track record, its strong bidding strategy, and smart execution capabilities as key drivers of its growth potential. With a healthy order pipeline and an easing of banking constraints, Afcons is well-positioned to capitalise on the government’s capex cycle and post strong revenue and profit growth through financial year 2026E-27E.

Afcons stands out as one of India’s most diversified mid-sized EPC companies, with expertise in executing complex projects across various sectors. The company has maintained stable financial performance, marked by consistent margins and a strong balance sheet, the brokerage noted.

Its disciplined bidding approach and conservative accounting practices have enabled Afcons to stay resilient, even in challenging market conditions. With the easing of non-fund banking limits, the company has seen a sharp rise in order inflows, and Investec expects this momentum to continue, providing robust revenue visibility.

Investec’s target price for Afcons stands at Rs. 630 per share, valuing the company at a 27x Mar-27 PE, which is justified by its diversified portfolio, strong execution record, and consistent financials.

The scrip rose as much as 5.16% to Rs 567.80 apiece. It pared gains to trade 1.95% higher at Rs 550.50 apiece, as of 09:31 a.m. This compares to a 0.33% advance in the NSE Nifty 50 Index.

It has risen 16.09% in the last 12 months. The relative strength index was at 63.

Two analysts maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 14%.