Afcons Infrastructure shares jump 5% after securing Rs 7,544 crore Croatia railway project

Synopsis

Afcons Infrastructure shares jumped over 5% after the company secured its largest-ever international project—a Rs 7,544 crore railway construction and rehabilitation order in Croatia. The win marks Afcons’ entry into the European infrastructure market, boosting sentiment as mutual funds raised stakes and technical indicators signalled strengthening momentum.

Shares of Afcons Infrastructure surged 5.21% to Rs 343.60 during Tuesday’s trading session after the company announced a breakthrough in its international expansion strategy by securing a massive railway infrastructure project in Croatia worth approximately Rs 7,544 crore.

In its exchange filing dated May 11, Afcons Infrastructure announced that it had received intimation from the client confirming the company as the “most suitable bidder” for a railway rehabilitation and construction project in Europe.

The project is expected to be Afcons’ largest international order to date and represents the company’s official foray into the European infrastructure sector.

Commenting on the development, Executive Chairman Mr Krishnamurthy Subramanian said the project represents a significant milestone in Afcons’ global growth journey. He added that the win highlights the company’s capability to execute complex and large-scale infrastructure projects across geographies while strengthening its reputation as a trusted international infrastructure partner.

Managing Director S. Paramasivan stated that the project includes the reconstruction of the existing railway track along with the construction of a second railway line. The scope also covers overhead electrification, signalling systems, and telecommunication works. The total project value stands at €677.07 million excluding taxes, equivalent to nearly Rs 7,544 crore.

He further noted that the project aligns with the vision of India’s Prime Minister’s “Making for the World” initiative, showcasing Indian engineering capabilities on the global stage.

Stock Performance & Valuation

On the valuation front, Afcons Infrastructure is currently trading at a Price-to-Earnings (PE) ratio of 27.81, while its Price-to-Sales (P/S) ratio stands at 1.43 and Price-to-Book (P/B) ratio at 2.38. From a technical perspective, the stock is showing positive momentum, indicating underlying strength in the ongoing trend.

According to Trendlyne data, the stock’s RSI (14) is at 51.5, indicating neutral momentum. Typically, an RSI below 30 is considered oversold, while an RSI above 70 is viewed as overbought.

Also read: Groww shares sink 7% as Peak XV, Sequoia, others launch Rs 5,637-crore stake sale amid IPO lock-in expiry

Technically, the stock remains in a bullish zone as it is trading above 6 out of its 8 key simple moving averages (SMAs), suggesting improving momentum after recent consolidation.

Mutual Funds Raise Stake

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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