Infrastructure development is critical to India’s goal of becoming a $5 trillion economy by 2025. To boost the expansion of the infrastructure industry, the government has launched many schemes including the National Infrastructure Pipeline (NIP), in conjunction with other programs such as ‘Make in India’ and the production-linked incentives (PLI) plan.
Historically, more than 80 percent of infrastructure expenditure in India has gone towards transportation, energy, and water, and irrigation. As a result, any stocks related to infrastructure, from cement firms to port authorities and cargo business might benefit.
According to the report India’s infrastructure industry would increase at an 8.2 percent CAGR by 2027.
Here are three Undervalued Infrastructure Stocks under Rs 50
Generic Engineering Construction and Projects Ltd.
Generic Engineering Construction and Projects Ltd is a penny stock with a market capitalization of Rs 250 crores. The company’s shares were trading at Rs 47.15 per share, up 0.11 percent on Tuesday from the previous close price.
The company’s P/E ratio is 13.83, which is lower than the industry’s P/E ratio of 28.36, indicating that the stock is trading at a lower price or is undervalued, With an EPS of 3.37.
Generic Engineering Construction and Projects company margins have slightly improved with a net profit margin of 5.61 percent and operating margin of 11.53 percent and the company has a debt to equity ratio of 0.24.
The company’s revenue has declined by 25 percent year on year, from Rs 70 crore in Q1FY23 to Rs 52 crore in Q1FY24. During the same period, net profit jumped by 33 percent from Rs 3 crore to Rs 2 crore.
Generic Engineering Construction & Projects Limited is a construction company engaged in the construction of residential, industrial, commercial, and institutional buildings with a presence in Navi Mumbai and the Mumbai Metropolitan Region.
Sonu Infratech Ltd
Sonu Infratech Ltd is a penny stock with a market capitalization of Rs 36 crores. The company’s shares were trading at Rs 46 per share, on Tuesday from the previous close price.
The company’s P/E ratio is 13.22, which is lower than the industry’s P/E ratio of 28.36, indicating that the stock is trading at a lower price or is undervalued, With an EPS of 3.46.
Sonu Infratech Company’s net profit margins increased from 3.29 percent in FY22 to 4.26 percent in FY23, while operating margin rose from 8.21 percent to 9.67 percent during the same period.
The company’s revenue has increased by 20 percent year on year, from Rs 53 crore in FY 21-22 to Rs 64 crore in FY 22-23. During the same period, net profit jumped by 56 percent from Rs 1.75 crore to Rs 2.73 crore.
Sonu Infratech Ltd is in the business of Construction of Mechanical and Civil Works.
Written By Omkar Chitnis
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