Infrastructure stocks trading below market valuation offer savvy investors a compelling opportunity. These undervalued assets represent resilient sectors with solid long-term growth potential, signaling economic recovery and infrastructure development. Low P/E ratios suggest significant market inefficiencies, promising attractive entry points for strategic, forward-thinking investment strategies.
The recent decline in Indian infrastructure stocks is due to several factors: rising interest rates by the Reserve Bank of India (RBI), which increases borrowing costs, global economic uncertainties affecting investor sentiment, sector-specific issues like project delays and rising input costs, profit booking after gains, high stock valuations, and slow implementation of government initiatives like the National Infrastructure Pipeline. These elements together have led to reduced investor confidence and stock corrections.
Following Is List of stocks with a P/E less than 9:
1. PNC Infratech Limited
Established in 1989 in Agra, PNC Infratech excels in infrastructure development, focusing on highways, bridges, and power transmission lines. Known for end-to-end EPC solutions, it employs 8,796 professionals, driving India’s infrastructure growth.
In FY2024, the company reported a revenue of Rs. 8,650 crore, marking a growth of 8.7% from Rs. 7,956 crore in FY2023. Profits also saw a significant rise, reaching Rs. 909 crore in FY2024, up from Rs. 658 crore in FY2023, reflecting a growth of 38.2%.
The company is currently trading at a P/E of 6.33 with a CMP of Rs. 305.80, showing a daily movement of -0.47%. The stock is at a 45% discount from the start of the year, with a market cap of Rs. 7,690 crore.
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2. KNR Constructions
Founded in 1995, KNR Constructions specializes in road infrastructure, completing over 6,000 km of highways, flyovers, and irrigation systems. Renowned for efficient execution and government projects, it is a trusted name in India’s construction sector.
In FY2024, the company achieved a revenue of Rs. 4,429 crore, reflecting a growth of 9.0% from Rs. 4,062 crore in FY2023. Profits surged to Rs. 752 crore in FY2024, a significant increase of 71.3% from Rs. 439 crore in FY2023.
The company is currently trading at a P/E of 7.46 with a CMP of Rs. 293.50, reflecting a daily movement of -3.04%. The stock is at a 21.90% discount over the last 6 months, with a market cap of Rs. 8,570 crore.
3. Ashoka Buildcon
A key player in the Ashoka Group, Ashoka Buildcon manages EPC and PPP projects for roads and highways across India and internationally. Known for quality and safety, it delivers large-scale infrastructure projects effectively.
In FY2024, the company posted a revenue of Rs. 9,798 crore, showing a growth of 21.0% from Rs. 8,100 crore in FY2023. Profits also grew substantially to Rs. 521 crore, up 77.3% from Rs. 294 crore in FY2023.
The company is currently trading at a P/E of 7.78 with a CMP of Rs. 258.10, showing a daily movement of -4.72%. The stock is at an 16% discount from the start of the year, with a market cap of Rs. 7,690 crore.
Written By Fazal UL Vahab C H
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