infrastructure

Afcons Infrastructure

AFCONS · Nifty 50

319.1

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positioninfrastructure sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score45/100 (WEAK). 3 positive flags, 6 concerns.

Fundamental

45/100

WEAK

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Afcons Infrastructure scores 45/100 on fundamentals (weak). Afcons Infrastructure: BROAD EXPANSION regime.

Fundamental Score: 45/100 · WEAK · 2 signals detected

DuPont Analysis

ROE 4.6% broken into three drivers. Each shows how efficiently the company generates returns.

ROE4.6%=
2.1%Net Margin
×
0.6xTurnover
×
3.5xLeverage

ROE of 4.6% is modest margin-driven and stable. Net margin of 2.1% × asset turnover of 0.62x × leverage of 3.5x.

What This Means

Net margin of 2.1% means the company keeps ₹2.1 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.62x means the company efficiently uses its assets to generate revenue. Leverage of 3.5x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

34.0%

Operating

8.9%

Net

2.1%

declining

Gross margin 34.0% → operating margin 8.9% → net margin 2.1%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

WEAK

Cash flow only covers -0.5x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

STRETCHED

Interest covered only 1.6x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 2.4x is moderate.

Free Cash Flow

MODERATE

FCF margin negative at -4.2% — spending more than earning. Check capex cycle.

Peer Comparison

Afcons Infrastructure is compared against 10 peers in the infrastructure sector.

Key Watchpoints

🟢

Breaks above ₹335 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹303 (-5%)

Further downside risk

🟢

Infrastructure sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (54.8%) than equity (3.6%)
⚠️ Low Earnings Quality: Cash flow only -0.5x earnings — weak cash conversion

Risk Flags

🔴 3 Critical⚠️ 3 Warning3 Positive9 total flags
🔴Unusual items are 30% of net income
Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

🔴Cash covers only 4% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

🔴Operating cash flow significantly below net income
Cash Flow

OCF is only -0.5x net income. Profit not converting to cash — aggressive accounting possible.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹77K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️72% of debt is short-term
Balance Sheet

High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.

⚠️Working capital changes are 1249% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

Receivables decreasing — 11.0% of revenue
Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

High promoter holding: 59%
Governance

Strong insider alignment. Promoters have significant skin in the game.

Price/Sales: 1.0x — reasonable revenue multiple
Valuation

Company not overvalued on revenue basis.

🔴 3 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
47.9UNAVAILABLE
P/B Ratio
2.2HIGH
Market Cap
₹1198977.9L CrHIGH
From 52W High
67% of high
Sector Peers
10