Multibagger stock: Brokerage firm Nuvama has initiated coverage on AGI Infra with a ‘buy’ recommendation due to ongoing and upcoming projects, anticipated high cash flows, and increasing demand for residential property.
Shares of the construction company closed 1.29 per cent higher at ₹1,066.9 on the BSE index after Friday’s stock market session, compared to ₹1.053.35 at the previous market close.
“We initiate coverage with a ‘BUY’ rating and a TP of INR1,448, valuing the stock at 1x FY26E NAV. AGI Infra (AGIIL) is among the few reputed real estate players in Punjab, with a dominant presence in Jalandhar, aided by a strong track record of well-received, high-quality projects,” Nuvama said.
Operating in a market with limited branded competition, it has built a presence and is expanding into high-demand markets throughout Punjab. With a solid project pipeline and a large, well-situated land bank, it is estimated to benefit from Punjab’s rising housing demand, according to the brokerage firm.
Nuvama further expects that the ongoing and upcoming residential projects will generate a gross cash flow of ₹8,282 crore and a net cash flow of ₹2,060 crore. It has been recommended to buy with a target price of ₹1,448, an upside of 36%.
About AGI Infra
AGIIL is a Punjab-based real estate developer with presence in cities such as Jalandhar, Ludhiana, Chandigarh, and Mohali. It has delivered over 10 projects. Primarily focused on residential real estate, it is also engaged in the commercial sector. Currently, it has 10 ongoing projects with a total saleable area of 11.32 million square feet, of which 4.98 million square feet remains available for sale. For the financial year ended on March 31, 2025, the company reported a net profit of ₹67 crore, compared to ₹52 crore posted in the previous year.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
