Image Source: Mint
Brokerage firm Nuvama Institutional Equities has initiated coverage on AGI Infra Ltd (AGIIL), a Punjab-based real estate developer, with a bullish outlook and a target price of ₹1,448—implying a potential upside of nearly 40 percent from current levels. The recommendation is backed by strong fundamentals, a robust project pipeline, and rising housing demand in the region.
Key highlights from Nuvama’s coverage:
AGIIL is among the few branded real estate players in Punjab, with a dominant presence in Jalandhar and expanding footprints in Ludhiana, Chandigarh, and Mohali.
The company has delivered over 10 residential and commercial projects and currently has 10 ongoing developments with a total saleable area of 11.32 million square feet.
Of this, 4.98 million square feet remains unsold, offering significant monetization potential in the near term.
Nuvama estimates gross cash flows of ₹8,282 crore and net cash flows of ₹2,060 crore from ongoing and upcoming projects.
Market positioning and strategic advantages:
AGIIL operates in a relatively underpenetrated market with limited branded competition, allowing it to command pricing power and customer trust.
The company’s land bank is strategically located in high-demand zones, giving it a competitive edge in project execution and sales velocity.
Its focus on quality construction and timely delivery has helped build a strong brand reputation, especially in Tier-2 cities.
Financial performance and valuation:
For FY25, AGIIL reported a net profit of ₹67 crore, up from ₹52 crore in the previous year, reflecting operational efficiency and improved margins.
Nuvama values the stock at 1x FY26E NAV, citing visibility on cash flows and asset monetization.
The brokerage expects continued momentum in residential real estate, driven by urbanization, rising disposable incomes, and favorable demographics in Punjab.
Investor outlook and risk considerations:
AGIIL’s growth trajectory is supported by macro tailwinds in housing demand and micro-level execution capabilities.
However, investors should monitor regulatory changes, interest rate movements, and execution risks that could impact project timelines and profitability.
The stock closed at ₹1,066.90 on the BSE after Friday’s session, up 1.29 percent, indicating early investor interest following the coverage initiation.
Conclusion:
AGI Infra’s strategic positioning, strong financials, and expanding footprint make it a compelling pick in India’s regional real estate landscape. Nuvama’s endorsement adds credibility to its growth story, but investors should weigh the upside against sectoral risks and market volatility.
Sources: LiveMint, MSN Money
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