Synopsis:
HDFC Securities has recommended several infrastructure and EPC stocks offering strong upside potential.
According to HDFC Securities, Infrastructure and EPC stocks witnessed muted activity in Q2/H1 FY26 as NHAI road awards slowed, with BOT at twenty percent, EPC at ten percent, and HAM at seventy percent.
Extended monsoons may delay project execution, although private real estate, mining, and urban infrastructure projects showed some improvement. Companies are increasingly diversifying into solar, battery energy storage systems (BESS), T&D, railways, and river interlinking, while private capex focuses on renewables, data centres, and semiconductor projects.
Earnings for EPC and infrastructure firms are expected to decline year-on-year, with revenue, EBITDA, and PAT down 6.8 percent, 11.1 percent, and 37.5 percent respectively. Capital goods revenue may see a 16.2 percent increase YoY, though PAT is expected to fall by 20.6 percent.
Meanwhile, domestic T&D and BESS demand is poised to rise, supported by HVDC pipelines, renewable investments, and declining battery costs, which offer 12 to 14 percent internal rates of return. EPC stocks are trading at cyclically low valuations, making diversification critical amid slower road ordering. Companies with strong balance sheets and stable cash flows are preferred.
1. J Kumar Infraprojects
J. Kumar Infraprojects Limited is an Indian construction firm engaged in executing a wide range of infrastructure projects. Its work spans transportation engineering projects such as roads, bridges, flyovers, subways, metro stations, and skywalks; civil construction including hospitals, educational institutions, commercial complexes, and sports facilities; as well as sewage treatment plants, riverfronts, tunnels, and residential and commercial property projects.
The company serves central and state government departments, municipal bodies, metro rail corporations, public sector entities, urban development authorities, and private sector clients.
The company has a market cap of Rs. 4,724.18 crore, with its stock closing at Rs. 624.35 on 15th October 2025. HDFC Securities has set a target price of Rs. 1,052, implying an upside of 68.5 percent.
2. IRB Infrastructure Developers
Incorporated in 1998, IRB Infrastructure Developers undertakes construction projects under Engineering, Procurement and Construction contracts and provides operation and maintenance services through subsidiaries and joint ventures.
With a strong presence in the Build-Operate-Transfer sector, the company develops roads and highway infrastructure, serving major clients including central and state government departments and toll road commuters.
IRB Infra has a market cap of Rs. 25,478.54 crore, with its stock closing at Rs. 42.19 on 15th October 2025. HDFC Securities has assigned a target of Rs. 68, representing an upside of 61.1 percent.
3. HG Infra Engineering
H.G. Infra Engineering Limited, along with its subsidiaries, operates in the engineering, procurement, and construction (EPC) sector in India. The company delivers EPC services on turnkey and hybrid annuity models for civil construction and related infrastructure projects.
Its operations include the development and maintenance of roads, highways, bridges, flyovers, railway networks, metro systems, solar power plants, and water sector projects. Incorporated in 2003, the company is headquartered in Jaipur, India.
The company has a market cap of Rs. 5,991.51 crore, with its stock closing at Rs. 919.35 on 15th October 2025. HDFC Securities has set a target of Rs. 1,987, giving a potential upside of 116.1 percent.
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4. PNC Infratech
Incorporated in 1999 as PNC Construction Company, PNC Infratech is a leading infrastructure firm offering comprehensive solutions across investment, development, construction, operation, and management.
It provides EPC, DBFOT, toll, annuity, hybrid annuity, and operate-maintain-transfer services across multiple states, including Delhi-NCR, Uttarakhand, Karnataka, Maharashtra, Uttar Pradesh, Rajasthan, Haryana, Punjab, Madhya Pradesh, and Gujarat.
PNC Infratech has a market cap of Rs. 7,298.54 crore, with its stock closing at Rs. 284.50 on 15th October 2025. HDFC Securities has given a target price of Rs. 417, translating into an upside of 46.4 percent.
5. NCC
Incorporated in 1990, NCC is active across the infrastructure sector, executing industrial, institutional, hospital, hospitality, commercial, and housing projects, as well as transportation projects like roads, bridges, flyovers, metros, tunnels, irrigation, mining, electrical distribution, and smart meter projects. Its clients include central and state governments, municipal bodies, public sector undertakings, and private sector companies.
The company has a market cap of Rs. 13,291.51 crore, with its stock closing at Rs. 211.70 on 15th October 2025. HDFC Securities has set a target of Rs. 305, implying an upside of 44.1 percent.
6. Ashoka Buildcon
Ashoka Buildcon Limited is an Indian construction company operating across construction and contract-related activities, Built, Operate, and Transfer (BOT)/Annuity projects, and sale of goods.
The company executes infrastructure projects on EPC and BOT bases, while also selling ready-mix concrete and real estate properties. Its portfolio includes highways, bridges, power, buildings, solar, water, airports, and railway projects.
The company has a market cap of Rs. 5,373.04 crore, with its stock closing at Rs. 191.40 on 15th October 2025. HDFC Securities has assigned a target of Rs. 273, representing an upside of 42.6 percent.
Written By Manan Gangwar
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