Multibagger SME stock hits lifetime high, jumps 120% in 8 months after tepid listing

Multibagger IPO: Following a tepid listing on the bourses in March this year, SME stock AVP Infracon has gained momentum, rallying 120 per cent from its listing price to a fresh high of ₹174.15 on the NSE on Monday, November 11. The stock was locked in its upper circuit limit of 2 per cent today.

The strong surge in AVP Infracon’s share price can be attributed to solid financial performance in the ongoing financial year, along with a robust order book.

AVP Infracon’s initial public offer (IPO), which was open for subscription between March 13 and March 15, 2024, on the NSE SME platform, saw a lacklustre debut. The stock was listed at a premium of just 5.33 per cent at ₹79 per share, over the IPO price of ₹75 on March 20, 2024. But since then, the stock has provided multibagger returns to investors, rallying 120.44 per cent from its listing price and 132 per cent from its IPO price.

Strong Financial Performance

In the first half of the financial year 2024-25 (FY25), AVP Infracon saw a 63.05 per cent year-on-year (YoY) rise in its consolidated revenue from operations to ₹109.22 crore, up from ₹66.98 crore in the same period last year. Similarly, its profit surged over 75 per cent YoY to ₹12.76 crore in H1 FY25, compared to ₹7.27 crore in H1 FY24.

On the operating front, the company’s earnings before interest, tax, depreciation, and amortization (EBITDA) grew 63 per cent YoY to ₹23.95 crore, while EBITDA margins stood at 21.92 per cent, up by 2 basis points YoY, as the company stated in a corporate filing.

Meanwhile, the company witnessed a rating upgrade from CRISIL during the first half of FY25, underscoring its improving financial strength. CRISIL upgraded the company’s long-term credit rating to CRISIL BBB-/Stable from CRISIL BB/Stable and its short-term capital rating to CRISIL A3 from CRISIL A4+.

Order Wins

During the first half of the current fiscal year, the company secured two contracts from the National Highways Authority of India (NHAI) worth ₹41.25 crore.

The first contract, valued at ₹33.93 crore, involves the strengthening and overlay of the Thirumayam-Manamadurai section. The second contract covers operation, maintenance, and incident management services along the Pondicherry-Tindivanam section of NH-32, extending into Tamil Nadu and Puducherry. This contract is valued at ₹7.32 crore.

Additionally, another notable order win for the company in H1 FY25 was contracts worth ₹70 crore from CDR & Co Constructions. The scope of work includes the construction of a bypass to Bagalur town in Tamil Nadu, as well as the widening and strengthening of the Kallakurichi-Tiruvannamalai Road (SH-6).

In November, the company also won an order worth nearly ₹17 crore from the District Rural Development Agency (DRDA), Kallakurichi, for the supply and delivery of 8mm and 10mm steel rods.

Overall, the company has an order book valued at ₹300 crore, with 13 ongoing projects in the pipeline.

AVP Infracon, based in Tamil Nadu, focuses on infrastructure projects, including roads, bridges, irrigation and canal works, flyovers, and industrial infrastructure. The company specializes in areas such as expressways, national and state highways, flyovers, bridges, viaducts, irrigation projects, urban development (including civic amenities), and commercial developments.