Infra stock jumps 3% after receiving order worth over ₹9 Cr for 2.08 MWp Solar Project

The shares of the leading infrastructure company gained 3 percent after the company received a significant work order for a 2.08 MWp Solar Project worth Rs 9.23 crore.

Price movement

With a market capitalization of Rs 485.85 crore, the shares of AVP Infracon Ltd were trading at Rs 194.50 per share, increasing around 2 percent as compared to the previous closing price of Rs 190.70 apiece.

Reason for Rise

The shares of the company have seen bullish movement after AVP Infracon Ltd received a significant work order for consideration of Rs 9.23 crores from B.R Constructions for the Execution of a 2.08 MWp Solar project.

Financial condition

Analyzing the company’s financial performance, revenue zoomed by 52 percent from Rs 63 crore in H1FY24 to Rs 96 crore in H1FY25 but during the same time, net profit stretched by 85 percent from Rs 7 crore to Rs 13 crore.

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Recent achievements

The company secured two NHAI contracts worth Rs. 41.25 crores and back-to-back projects totaling Rs. 70 crores, including a Bagalur bypass and Kallakurichi-Tiruvannamalai widening. CRISIL upgraded its credit rating, and it inaugurated a third ready-mix concrete plant in Dharapuram with a 90 percent stake.

Future Outlook

The company is expanding beyond Tamil Nadu into Madhya Pradesh, Andhra Pradesh, and Telangana, exploring joint ventures to strengthen capabilities. It anticipates Rs. 750 crores in fresh orders for FY ’25, mainly from roads, and targets Rs. 500 crore turnover by FY ’26, backed by a Rs. 1,000 crore order book.

Margin guidance

Management is committed to sustaining current margins without projecting increases. The focus remains on profitability through operational efficiency and cost management, ensuring stable financial performance. By optimizing operations and controlling expenses, the company aims to maintain its margins while navigating market challenges effectively.

Order Book

The company has an unexecuted order book of Rs. 250 crores and is actively bidding for new tenders to sustain a strong order book ratio. Short-term loans have risen due to bill discounting and factoring, but management assures no long-term debt concerns.

Strategic Investments

The company invested Rs. 3.6 crores for a 90 percent stake in Kanthan Blue Metals, supporting sustainable growth. It aims to expand into new regions and sectors, including irrigation and high-rise buildings, reinforcing its strategic vision for long-term growth and diversification.

Company Profile

AVP Infracon Limited is engaged in the construction of road projects based on Bill of Quantities (BOQ) and Engineering, Procurement, and Construction (EPC) methods. The company undertakes various types of infrastructure developmental and construction works like Expressways, National Highways, Flyovers, Bridges, and others.

Written by Abhishek Singh

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