π§ A B Infrabuild Ltd β From Potholes to Profits?
Date of Publishing -
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At a Glance
A B Infrabuild Ltd, a Mumbai-based civil contractor, has gone from small roads to serious rerating. With a 250% stock jump in 1 year and operating margins improving to 16%, the company is now attracting attention β and dilution. But with promoter holding at just 31%, rising debt, and a PE of 65x, is this rally built on concrete or just fly ash?
1. πͺ Introduction β Why This Is a Screamer
Stock up 250% in 1 year π
Operating margins surged from 10% β 16%
Net profit up >100% YoY, EPS tripled in 2 years
Rights issue of βΉ40 Cr just completed
Promoter holding down from 59% β 31% in 2 years π€¨
This is your classic infra stock glow-up β now with a twist of leverage, rights dilution, and potential rerating.
2. π WTF Do They Even Do?
Full-stack civil construction player β roads, bridges, railways, sidings
Contracts with MCGM, PWD Maharashtra, and central agencies
Holds AA-class contractor status
Active in urban infra, especially Mumbai and Western India
Holds ISO & OHSAS certifications π
Think NBCC but tiny. Like L&T, but on a budget. Theyβre executing public infra, but no big PPPs or mega-NHAI highways yet.