Afcons Infrastructure Ltd.
ISIN: INE101I01011 • Market Cap: ₹10,223 Cr
The 5-Pillar Quality Audit for Afcons Infrastructure Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (9.2%), Return on Capital Employed (12.0%), and equity compounding (4.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.65 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-5.3%) and 3Y PAT CAGR (-31.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 70.65 vs PEG of 3.07 and Dividend Yield of 0.7%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 50.2%, backed by 32.2% institutional ownership.
Key Fundamental Strengths
Deep Institutional Sponsorship (32.2%)
Mutual funds, domestic DIIs, and foreign FIIs hold 32.2%, providing strong governance scrutiny.
Consistent Market Standing (Mid Cap)
Established player in the Construction sector with an overall fundamental quality score of 48/100.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: -5.3%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Priced for Perfection (P/E: 70.65)
A steep valuation multiple of 70.65 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking AFCONS against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 48/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Sector Peer Comparison
Compare AFCONS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Afcons Infrastructure Ltd. (AFCONS)Current | 48/100 | ₹10,223 Cr | 70.65 | 12.0% | 0.65 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: Afcons Infrastructure Ltd.
Q:What is the 5-Pillar Fundamental Score for Afcons Infrastructure Ltd. (AFCONS)?
Afcons Infrastructure Ltd. has a RupeeTools Fundamental Score of 48/100, placing it in the 'Caution / Risky' category. Its pillar scores are: Profitability (43/100), Financial Health (58/100), Growth (18/100), Valuation (43/100), and Ownership Quality (85/100).
Q:Is AFCONS fundamentally strong for long-term investment?
AFCONS currently holds a moderate quality rating of 48/100. While it operates in the Construction sector, investors should monitor its debt health before initiating long-term positions.
Q:Does AFCONS pass the Coffee Can Investing filter?
No. AFCONS does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does AFCONS compare against other Construction peers?
Within India's Construction sector, AFCONS trades at a P/E of 70.65 and generates an ROCE of 12.0%. Compare its 5-Pillar score of 48/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.