Infra stock in focus after receiving ₹87 Cr LoA for highway construction project in TN

During Monday’s trading session, the shares of one of the leading infrastructure development companies in India are in focus on NSE, after securing an infrastructure project worth ~Rs. 87 crores in Tamil Nadu.

Price Movement

With a market cap of Rs. 470 crores, the shares of AVP Infracon Limited hit a 5 percent lower circuit at Rs. 188.2 on NSE, as compared to its previous closing price of Rs. 198.1.

What’s the news

According to the latest regulatory filings with the NSE, AVP Infracon Limited has received a Letter of Acceptance (LOA) from the Superintending Engineer Highways Construction and Maintenance, Tiruvannamalai Circle, for the widening and strengthening of the Thirukoilur-Asanur road in Tamil Nadu.

The project, valued at ~Rs. 86.54 crores, involves expanding the road from two lanes to four, along with significant infrastructure improvements, such as junction upgrades, the widening and reconstruction of culverts, the construction of minor bridges, and the development of a centre median, drainage retaining walls, and paver blocks.

This project is part of a broader initiative to enhance regional transportation networks and is expected to be completed within 18 months

Also read: Solar stock hits 5% upper circuit after receiving ₹30 Cr order from Central PSU

Previous Orders

14th December 2024: The company announced a strategic step forward in its business expansion. Through its partnership firm, in which AVP Infracon holds a 90 percent stake in Kanthan Blue Metals, the company acquired 23 acres of land in Tirupur District for approximately Rs. 13.18 crores. This land will be used to establish a state-of-the-art crusher unit

The total investment for this project is estimated at Rs. 17 crores, covering the cost of the land and the construction of the new facility. The funding will be sourced through a mix of external capital and internal resources. 

The crusher unit is expected to be operational within six months, marking a key milestone in the company’s growth strategy.

Financials

AVP Infracon reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 62.7 percent, from Rs. 67 crores in H1 FY24 to Rs. 109 crores in H1 FY25.

Similarly, its net profit increased during the same period from Rs. 7 crores to Rs. 13 crores, representing a rise of nearly 85.7 percent YoY.

About the company

Established in 2009, AVP Infracon Limited focuses its operations on pivotal projects such as roads, bridges, irrigation and canal projects, flyovers, and industrial infrastructures.

The company specializes in segments including expressways, national highways, state highways, flyovers, bridges, viaducts, irrigation projects, urban development – civic amenities, and commercial projects.

As of date, the company maintains a substantial order book valued at Rs. 300 crores.

Written by Shivani Singh

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