Check Before You Invest : Afcons Infrastructure Ltd

Snapshot

Q.1 Which industry/sub-sector does Afcons Infrastructure Ltd belong to?

Afcons Infrastructure Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Afcons Infrastructure Ltd a good quality company?

Afcons Infrastructure Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Afcons Infrastructure Ltd undervalued or overvalued?

Afcons Infrastructure Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Afcons Infrastructure Ltd a good buy now?

Afcons Infrastructure Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Afcons Infrastructure Ltd?

Afcons Infrastructure Ltd revenue growth is -3.2% for FY-2025, which is below its 5-year CAGR of 6.2%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Afcons Infrastructure Ltd?

Afcons Infrastructure Ltd Return on capital employed is 22.79% for FY-2025, which is in line with its 5-year historical median of 22.79%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Afcons Infrastructure Ltd?

Afcons Infrastructure Ltd Return on Asset is 3.54%, which is above its 5-year historical median of 2.95%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Afcons Infrastructure Ltd?

Afcons Infrastructure Ltd Return on equity is 14.83% for FY-2025, which is in line with its 5-year historical median of 15.44%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Afcons Infrastructure Ltd?

Afcons Infrastructure Ltd Cash conversion cycle is -13 days, below its 5-year historical median of -6 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.75	0.85
ROE	14.83	15.44
ROCE	22.79	22.79
Cash Conversion Cycle	-13 days	-6 days

Q.6 Gross Profit margin of Afcons Infrastructure Ltd?

Afcons Infrastructure Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.4% for FY-2025, which is above its 5-year median of 8.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Afcons Infrastructure Ltd?

Afcons Infrastructure Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.57% for FY-2025, which is above its 5-year median of 10.56% indicating increasing margins.

Q.8 Net Profit Margin of Afcons Infrastructure Ltd?

Afcons Infrastructure Ltd Net Profit Margin is 4.69% for FY-2025, is above with its 5-year median of 3.29%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	10.4	8.8
Operating Profit Margin	11.57	10.56
Net Profit Margin	4.69	3.29

Q.9 Debt to Equity ratio of Afcons Infrastructure Ltd?

Afcons Infrastructure Ltd Debt-to-Equity ratio is 0.47, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Afcons Infrastructure Ltd?

Afcons Infrastructure Ltd Debt to cash flow from operations is -19.23, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Afcons Infrastructure Ltd?

Promoters hold 50.17% of the Afcons Infrastructure Ltd, with 60.13% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Afcons Infrastructure Ltd vs industry peers?

Afcons Infrastructure Ltd revenue CAGR is 6.20%, compared to the industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-3.2	9.5
Gross Profit Growth	12.3	14.9
Operating Profit Growth	6.4	11.1
Net Profit Growth	32.6	18.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.75	0.68
ROE	14.83	8.34
ROCE	22.79	11.34
Cash Conversion Cycle (days)	-13.36	57

Valuation & price assessment

Q.1 Stock return of Afcons Infrastructure Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -19.18% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-19.2%

Q.3 Valuation ratios of Afcons Infrastructure Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	23.65	26.87	21.62
Price to Book	2.48	2.56	1.75
Price to Sales	1	1.25	1.50
EV to EBITDA	8	9.15	11.53

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