Target Price: ₹1,448
CMP: ₹1,067.60
We initiate coverage with a ‘Buy’ rating and a TP of ₹1,448, 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.
Operating in a market with limited branded competition, it has established a strong position and is strategically expanding into high-demand micro-markets across Punjab. With a robust development pipeline and a sizable, well-located land bank, it is well-positioned to capitalise on Punjab’s growing housing demand.
Our Buy recommendation is drive by: well located land bank; experienced management; strong execution; strong demand; healthy cash flows; comfortable balance sheet; and attractive valuations.
Expect healthy cash flows aided by the development of land parcels, strong brand positioning and price premium in Punjab . We discount cash flows to FY26 to arrive at a NAV of ₹3,539 crore We value AGIIL on its FY26E NAV considering its land reserves and ability to add projects aggressively in its existing micro-market given its brand value and improved balance sheet..
Key risks: Slower than expected execution and delivery; Higher concentration of projects in Punjab; and cyclicality and slowdown in demand
Published on July 28, 2025