Afcons Infrastructure Ltd (AFCONS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Power Mech Proj.

Engineers India

Techno Elec.Engg

Vertis Infra.

Rites

Powergrid Infra

NCC

Ircon Intl.

G R Infraproject

KEC Internationa

Afcons Infrastr.

Why is Afcons Infrastructure Ltd ?

Weak Long Term Fundamental Strength with a -1.80% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.25
The company has been able to generate a Return on Equity (avg) of 7.49% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -12.16%, the company declared Very Negative results in Mar 26

PBT LESS OI(Q) At Rs -231.69 cr has Fallen at -371.7% (vs previous 4Q average)
PAT(Q) At Rs -88.40 cr has Fallen at -169.2% (vs previous 4Q average)
ROCE(HY) Lowest at 12.53%

60.13% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
The proportion of pledged holdings has increased by 6.63% over the last quarter

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -0.28% in the last 1 year, its fall in the stock was much higher with a return of -28.50%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Afcons Infrastr. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Afcons Infrastr.

-28.53%

-0.92

31.10%

Sensex

-6.17%

-0.47

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.40%

EBIT Growth (5y)

-1.80%

EBIT to Interest (avg)

1.25

Debt to EBITDA (avg)

2.39

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

1.62

Tax Ratio

35.17%

Dividend Payout Ratio

15.69%

Pledged Shares

60.13%

Institutional Holding

33.14%

ROCE (avg)

12.84%

ROE (avg)

7.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.13

EV to EBIT

18.77

EV to EBITDA

11.77

EV to Capital Employed

1.75

EV to Sales

1.20

PEG Ratio

Dividend Yield

ROCE (Latest)

9.32%

ROE (Latest)

5.72%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-25What is not working for the Company

PBT LESS OI(Q)

At Rs -231.69 cr has Fallen at -371.7% (vs previous 4Q average

PAT(Q)

At Rs -88.40 cr has Fallen at -169.2% (vs previous 4Q average

ROCE(HY)

Lowest at 12.53%

NET SALES(Q)

At Rs 2,613.84 cr has Fallen at -16.7% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at 0.25 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.48 times

PBDIT(Q)

Lowest at Rs 42.92 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 1.64%

EPS(Q)

Lowest at Rs -2.40

Loading Valuation Snapshot...

Here's what is not working for Afcons Infrastr.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -231.69 cr has Fallen at -371.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 85.29 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -88.40 cr has Fallen at -169.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 127.76 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 2,613.84 cr has Fallen at -16.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 3,139.45 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 0.25 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

Lowest at Rs 2,613.84 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 42.92 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 1.64%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -231.69 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -2.40

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 3.48 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio