Afcons Infrastructure Ltd. (AIL), a company under the Shapoorji Pallonji Group, is preparing to launch its initial public offering (IPO), which has attracted investor attention.

AIL, established in 1959, has a wide range of projects in its portfolio, including marine, industrial, surface transport, urban infrastructure, hydro, and oil and gas projects.

The company has a significant international presence, with around 30% of its revenue coming from exports to Asia, Africa, and the Middle East.

As of June 30, 2024, AIL has 65 active projects in 12 countries and an order book valued at ₹31,747 crore, indicating a strong order book to sales ratio of 2.4x for FY24.

AIL has also been identified as an 'L1 bidder' for projects worth ₹10,732.36 crore.

In terms of financial performance, AIL reported a return on capital employed (ROCE) of 15.3%, a return on equity (ROE) of 12.5%, EBITDA margins of 10.3%, and profit after tax (PAT) margins of 3.4% for FY24, demonstrating its strong execution capabilities.

The Indian construction industry, valued at ₹23,978 billion in FY23, is expected to be the fastest-growing globally, with a projected compound annual growth rate (CAGR) of approximately 10% from FY23 to FY28, reaching ₹38,508.9 billion by FY28, according to a report by Fitch.

Given AIL's extensive experience and geographical diversification, analysts recommend a "Subscribe" rating for medium- to long-term investment.