Afcons Infrastructure shares rallied over 8% in early trade on Wednesday, June 10, after securing a significant order worth ₹5,301 crore for the Vadhvan Port Project. As reported by NDTV Profit, the stock opened at ₹335, over 6% higher than its previous close of ₹315.50, and extended gains to hit an intraday high of ₹346.50. The small-cap stock priced under ₹500 gained momentum after the opening bell amid positive sentiment in the domestic stock market. The stock has gained 4.5% in one week but has lost 14% year-to-date and 24% in one year, with the company commanding a market cap of ₹12,328.14 crore as per NSE data.
Afcons Infrastructure, the flagship infrastructure engineering and construction company of the Shapoorji Pallonji Group, has secured a significant order worth ₹5,301 crore for the Vadhvan Port Project. As reported by multiple sources, the company received a letter of award (LoA) from Vadhvan Port Project Limited (VPPL) for the construction of a 10.14 km-long breakwater at the upcoming Vadhvan Port in Maharashtra. When completed, it will be the second-longest breakwater in the world, according to a regulatory filing dated June 9. The contract highlights the accelerating pace of the Sagarmala program and the government's push for port-led industrialization, providing high revenue visibility and reinforcing the company's margin profile due to the complex nature of breakwater construction.
By securing this ₹5,301 crore breakwater contract, Afcons Infrastructure establishes itself as a core contractor for India's largest deep-sea port initiative. The Vadhvan Port project has a total cost of over ₹76,000 crore, making it one of India's most significant infrastructure developments. The order significantly improves the company's order book-to-bill ratio and provides stable revenue visibility for at least 36 to 48 months, allowing for better capital expenditure planning and debt management. Breakwaters are offshore structures built to protect port basins from waves, requiring high-precision marine engineering and heavy rock/concrete armor placement, which usually offers better margins than standard civil construction due to the technical expertise required.
The Vadhvan Port project represents a landmark infrastructure initiative, with the completed facility positioned as India's largest public port and one of the world's biggest container ports. As reported by NDTV Profit, the port will have a handling capacity of 23.2 million TEUs, positioning India on the global trade map. Krishnamurthy Subramanian, Executive Chairman of Afcons Infrastructure, stated that this award is a testament to the company's proven expertise in delivering complex and large-scale marine infrastructure projects, describing the Vadhvan breakwater project as a strategic enabler for India's ambition to become a global maritime hub. S Paramasivan, Managing Director, emphasized that the project showcases India's growing expertise in executing complex infrastructure on a global scale.
