In this article, we are talking about road infrastructure stocks.The road construction sector is a key driver of economic growth, significantly contributing to infrastructure development and connectivity. With the Indian government’s ambitious plan to expand and upgrade the national highway network, road stocks are positioned for substantial growth.There is a good earning opportunity in Road Infrastructures,which is why people are focusing on this sector and also buying because it has a lot of projects from the government that may benefit investors in the future.For those interested in investing in this sector and seeking information about it, we will provide details on the top 6 Road Infrastructures Stocks. This will make it easier for you to choose the right stocks to invest in and help you make a good profit in the long term
Why Invest in Road Infrastructure Stocks?
The Indian government is investing heavily in the infrastructure sector, especially in road infrastructure, which includes the National Highway Development Program whose aim is to upgrade the National Highway network.
- With rapid urbanization and increasing vehicular traffic, there is a need for new highways and expansion of existing highways. This demand can translate into a strong project pipeline for road construction companies.
- Some companies in this sector showed impressive growth last year, among which companies like PNC Infratech and KNR Construction provided returns of up to 25%. Investors believe that the focus on the development of roads and highways can lead to the emergence of multibagger stocks. Right now, this sector is offering a good investment opportunity.
- Some companies in this sector showed impressive growth last year, among which companies like PNC Infratech and KNR Construction provided returns of up to 25%. Investors believe that the focus on the development of roads and highways can lead to the emergence of multibagger stocks. Right now, this sector is offering a good investment opportunity.
Overall, the combination of government initiatives, increasing demands, and strong performance makes investing in road infrastructure stocks a compelling choice for long-term growth.
Top 6 Road Infrastructure Stocks
1. NHAI
The National Highways Authority of India plays a very important role in infrastructure development, primarily focusing on the construction and maintenance of national highways. Its aim is to increase road connectivity across the country, facilitate economic development, and improve vehicle efficiency.
Talking about the company’s past performance, it completed 6,644 km of road construction in the last year, which was a significant increase from 4,882 km in FY 2023. NHAI’s focus on asset monetization has taken the total program to over ₹1 trillion by March 2024. In the latest order book,
NHAI’s current order book is worth around ₹1.14 lakh crore, reflecting its commitment to ongoing and upcoming infrastructure projects. The authority continues to prioritize road construction and expansion, which is important for India’s connectivity and economic development
2. IRB
IRB Infrastructure Developer Limited (IRB) is a prominent player in India’s infrastructure sector, primarily engaged in the development and management of road projects. The company aims to enhance road connectivity across India, contributing significantly to national infrastructure development, The share price of the company is just 64.5 and their market capitalization is 38946 crores. The company pays a dividend of 0.47% and their return on equity is 4.47%.
Talking about the past performance of the company, the company has achieved consistent revenue growth in one year. This has also been greatly helped by their previous project pipeline and strategic partnerships.
The latest order book indicates that IRB’s order book is around ₹30,000 crores, reflecting a solid backlog of projects that ensure revenue visibility for the years to come. This order book includes various ongoing and upcoming highway projects, which have been bolstered by government initiatives aimed at enhancing infrastructure across the country
3. GRIL
GR Infra Projects Limited is a prominent player in India in the price structure sector, primarily focused on road construction and development. The company has 25 years of experience in the construction sector. It operates its business in four categories: Construction & Development, Railway EPC (Engineering, Procurement, & Construction), Tunneling Projects, and Manufacturing facility for processing bitumen, cement, and other construction material. In terms of performance, financially the company is very strong. With a 42% year-on-year increase in revenue reported in FY 2024, the company has given a return of 29.87% in the last year. The company’s share price is also performing well. GRIL has been recognized for its project execution capabilities, receiving awards such as a top 10 constructor in India and the best project in infrastructure for its Eli Khanpur Expressway project.
Latest order book: The latest order book of the company stands at approximately ₹30,000 crores. The company has also secured several other projects:
1. Dibang Multipurpose Project worth ₹3,637.12 crores
2. Indore Multi-Modal Logistics Park project from NHAI
3. Two ropeway projects as the lowest bidder
4. Projects from East Coast Railways and National Highways Authority of India.
GRIL’s strong order book, project execution capabilities, and financial performance position it well for continued growth in the infrastructure sector..
4. PNC
PNB Infratech Limited is a prominent player in India’s infrastructure development sector and is engaged in road construction, irrigation, and urban improvement projects. It focuses on executing projects under various models including Build, Operate, Transfer (BOT), and Engineering, Procurement, and Construction (EPC). The company has numerous projects that include national highways, state highways, and other infrastructure projects. Let’s discuss its past performance. So far, their past performance has been strong, and the company is currently displaying good growth. The company’s revenue growth is approximately 20% year on year. The current share price of the company is 485, and its market capitalization is 12,736 crores. The company pays a dividend of 0.10%, and its net profit is 90 crores. The debt-to-equity ratio is 1.55. Overall, the company has strong fundamentals and has secured projects from the government. Therefore, in the future, the company is expected to be profitable.
PNC Infratech’s order book stands at approximately ₹30,000 crores. This includes various ongoing projects that provide significant revenue visibility for the company in the upcoming years. The order book reflects PNC’s strong position in the infrastructure sector, driven by government initiatives and the increasing demand for road and urban infrastructure development
5. HGE
HG infra Engineering Ltd (HGE) It is also an infrastructure company in India that is engaged in engineering procurement and construction services, particularly for projects on roads and highways. This company manufactures Bhaskar Road Polo and other infrastructure. Talking about their performance in the past years, they have demonstrated impressive financial growth with a compound growth rate of 32.8% in profits in the last 5 years. The company’s state for the financial year 2024 is expected to be around Rs 5,378 crore, which shows consistent growth in its operating performance. The company’s return on equity remains at 24.01%. The share price of the company is Rs1595, and their market capitalization is Rs10,392 crore.
HGE’s order book stands at approximately 1,180 crore. The company continues to be a key player in the Indian infrastructure landscape with a strong track record and growth potential.
6. DBL
Dilip Buildcon Limited is a prominent respective construction company in India, primarily engaged in the construction of roads, bridges, and other infrastructure projects. The company has a diverse portfolio that includes national highways, state highways, and other infrastructure projects across several states in India. The company has demonstrated strong financial performance in recent years.
DBL’s order book is around 17,432 crores.
Company Order book
NHAI. 1,14 lack crore
IRB 30,000cr
GRIL 30,000cr
PNC 30,000cr
HGE 1,180cr
DBL 17,432cr
Disclaimer; The information provided in this note is for general educational purposes only and should not be considered as a recommendation to buy or sell any stocks. Investors should conduct their own research and consult with financial advisors before making any investment decisions.
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