Afcons Infrastructure Emerges As Lowest Bidder For Rs 4,787-Crore Road Construction Project

Afcons Infrastructure Ltd. emerged as the lowest bidder for a Rs 4,787.20-crore road construction contract received from Maharashtra State Road Development Corp.

The first contract of Rs 2,718.50 crore includes construction of access-controlled Pune Ring Road E5, while the second contract of Rs 2,068.70 crore comprises construction of access-controlled Pune Ring Road E7, according to an exchange filing on Monday.

The project will be carried out through engineering, procurement, and construction mode within a timeframe of 36 months.

On Jan. 8, the company bagged a Letter of Intent from Defence Research and Development Organisation—research and development arm of Ministry of Defence for infrastructure work.

The Rs 1,084.54-crore infrastructure project will be carried out on engineering, procurement, and construction basis, within a timeframe of 36 months.

Afcons Infrastructure's net profit rose 30% to Rs 135 crore, in the second quarter of fiscal 2025, as compared to Rs 104 crore for the same period last year.

The Mumbai based infrastructure firm posted a total income of Rs 3,090 crore in July-September quarter, against Rs 3,434 crore in the same term last year.

The company's earnings before interest, tax, depreciation and amortisation were up 8.5% for Rs 427 crore for the three months ended Sept. 30, 2024, as against Rs 394 crore for the same quarter in the previous financial year.

Margins for the quarter expanded to 13.8% in the second quarter, as against 11.5% for the year ago period.

Shares of Afcons Infrastructure closed 3.80% lower at Rs 479.85 apiece on the National Stock Exchange, compared to a 1.47% fall in the benchmark Nifty. The share price has risen 1.19% from the date of its listing.

The two analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 28.6%.