Afcons Infra shares: Chenab Bridge inauguration puts focus on this Shapoorji Pallonji Group stock. Time to buy?

Mint

2 days ago

Afcons Infrastructure share price in focus: Afcons Infrastructure shares have been on the rise, gaining over 6% in three sessions, as investors cheered the company's role in constructing the iconic Chenab Bridge in Jammu and Kashmir, the world's highest railway bridge. The feat has drawn fresh attention to the Shapoorji Pallonji Group company, further boosted by multiple new order wins and a strengthening order book.
Situated at a height of 359 meters above the Chenab River and built at a cost of ₹ 1,486 crore, the bridge is 35 meters taller than the iconic Eiffel Tower in Paris. It was inaugurated on Friday by Prime Minister Narendra Modi, along with the Anji Khad Bridge and the Udhampur-Srinagar-Baramulla Rail Link.
Overcoming the initial challenges posed by the remote, mountainous terrain of the Himalayas, transporting equipment and materials to the site was a major hurdle. Afcons initially depended on mules and horses to access the location before eventually constructing temporary roads to ease the movement of men and machinery.
As the iconic Chenab Rail Bridge garners global attention, one of the key contributors to its successful construction is Professor G. Madhavi Latha, a geotechnical expert from the Indian Institute of Science (IISc), Bengaluru, who was associated with the project for 17 years.
G. Madhavi Latha worked closely with Afcons, the contractor of the bridge, in the planning, design, and construction of the structure, focusing on the obstacles posed by the terrain. Her commitment to the project has earned widespread praise, with congratulatory messages flooding social media—from Andhra Pradesh Chief Minister N. Chandrababu Naidu to Mahindra Group Chairman Anand Mahindra.
Across platforms, people are applauding G. Madhavi Latha's crucial role in making this engineering marvel a reality. Amid the praise following the Chenab Bridge inauguration, Professor G. Madhavi Latha took to LinkedIn to express gratitude and clarify her role. She credited Indian Railways and Afcons for the project's success, highlighting the contributions of thousands behind the scenes.
Downplaying media labels like 'the woman behind the mission,' she urged the public to recognise the many unsung heroes behind the engineering feat.
Meanwhile, she recently published a paper in the Indian Geotechnical Journal's women's special issue titled 'Design as You Go: The Case Study of Chenab Railway Bridge.' The paper describes how the design of the bridge has evolved continuously, with the overall structure, location, and type being the only constants to suit the geological conditions of the site.
The company has expanded its order book significantly in recent weeks, securing multiple new contracts — including a ₹ 700 crore order from Reliance Industries on Saturday. According to the company, this order involves construction work related to the Vinyl Projects at Dahej, Gujarat.
Prior to this, on May 30, the company was declared the lowest bidder (L1) for a water supply project covering 353 villages in the Dungarpur district. The project, titled 'Kadana Back Water (Mahi Dam) Package-1,' is valued at ₹ 463.50 crore.
Afcons Infrastructure debuted on Indian stock exchanges in November last year, with its shares listing at ₹ 426.00 apiece, an 8% discount to the issue price of ₹ 463.00, as the IPO saw lukewarm demand from retail investors.
Since its listing, the stock has remained volatile. At the current trading price of ₹ 447 apiece, it is down about 3.5% from the IPO price and nearly 21.6% below its recent high of ₹ 570.
Despite the stock's lack of clear upward direction, analysts remain optimistic about the company's growth prospects, citing its growing order book, strong track record in executing complex and unique EPC projects both in India and abroad, and stable financial performance over the years.
Commenting on the outlook for the stock, Jigar S Patel, Senior Manager - Technical Research, Anand Rathi Shares and Stock Brokers, said Afcons has recently broken above the key resistance level of 440, which coincides with the monthly R3 Camarilla pivot, indicating a potential shift in momentum.
"If the stock manages to sustain above 440 for the next 2–3 sessions, it could pave the way for an upward move towards 480. In the short term, support is seen near 430, while resistance lies around 460," Patel said.