Afcons Infrastructure IPO

To be announced
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About Afcons Infrastructure

Afcons Infrastructure Limited was founded in 1959. It is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji Group and a multinational firm headquartered in Mumbai, India. Afcons excels in diverse sectors such as marine, surface transport, urban infrastructure, hydro, underground, and oil and gas. The company provides infrastructure services and is involved in the construction of projects such as flyovers, metros, bridges, pipelines, roads, ports, barrages, and oil and gas facilities.

Financials of Afcons Infrastructure

Strengths

  • The company has a legacy of over six decades with a strong track record of executing complex and challenging Engineering, Procurement, and Construction (EPC) projects in India and internationally.
  • The company has a diversified order book across metro and urban infrastructure works, tunneling and hydro projects, surface transport, marine, and oil and gas segments.
  • Afcons Infrastructure Limited has a healthy order book position, providing strong medium-term revenue visibility and demonstrating its ability to secure projects across various segments and geographies.
  • The company’s operating income has grown over the years, and expected annual revenue growth and stable operating margins have contributed to this.

Risks

  • A significant portion of projects comes from government or government-owned entities, which introduces risks associated with political changes, bureaucratic delays, and funding availability.
  • Projects awarded may be challenged by unsuccessful bidders, resulting in potential delays or disruptions. Legal proceedings can incur substantial costs and may lead to the termination of contracts, adversely affecting future revenues.
  • Competition from other infrastructure companies, such as Larsen & Toubro Limited, KEC International Limited, Kalpataru Project International Limited, and Dilip Buildcon Limited, may threaten Afcons’ market share and profitability.
  • The infrastructure industry, where Afcons operates, can be subject to regulatory changes, economic fluctuations, and project delays, which could impact the company’s performance.