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

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Vertis Infra.

Cemindia Project

Engineers India

IRB Infra. Trust

Kalpataru Proj.

Techno Elec.Engg

IndiGrid Trust

KEC Internationa

Afcons Infrastr.

IRB Infra.Devl.

Ircon Intl.

Why is Afcons Infrastructure Ltd ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.45

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.45
The company has been able to generate a Return on Equity (avg) of 9.32% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.10% and Operating profit at 6.84% over the last 5 years

OPERATING CF(Y) Lowest at Rs -132.20 Cr
PBT LESS OI(Q) At Rs 36.70 cr has Fallen at -50.1% (vs previous 4Q average)
PAT(Q) At Rs 105.08 cr has Fallen at -21.1% (vs previous 4Q average)

53.5% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Below par performance in long term as well as near term

Along with generating -24.74% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Afcons Infrastr.

-24.8%

-0.74

33.37%

Sensex

4.66%

0.39

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.10%

EBIT Growth (5y)

6.84%

EBIT to Interest (avg)

1.45

Debt to EBITDA (avg)

2.22

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

1.70

Tax Ratio

29.90%

Dividend Payout Ratio

15.69%

Pledged Shares

53.50%

Institutional Holding

30.75%

ROCE (avg)

13.72%

ROE (avg)

9.32%

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

2.72

EV to EBIT

19.01

EV to EBITDA

12.30

EV to Capital Employed

2.13

EV to Sales

1.37

PEG Ratio

Dividend Yield

ROCE (Latest)

11.22%

ROE (Latest)

9.32%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

-14What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -132.20 Cr

PBT LESS OI(Q)

At Rs 36.70 cr has Fallen at -50.1% (vs previous 4Q average

PAT(Q)

At Rs 105.08 cr has Fallen at -21.1% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.94 times

NET SALES(Q)

At Rs 2,988.39 cr has Fallen at -6.4% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 75.41 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 2.86

Loading Valuation Snapshot...

Here's what is not working for Afcons Infrastr.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 36.70 cr has Fallen at -50.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 73.51 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 105.08 cr has Fallen at -21.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 133.16 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs -132.20 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 1.94 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

At Rs 2,988.39 cr has Fallen at -6.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 3,191.11 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 75.41 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs 2.86

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)