The market size of the Indian ‘Infrastructure’ Sector is estimated at USD 204.06 bn in 2024 and is expected to touch USD 322.27 bn by 2029, growing at a compounded rate (CAGR) of around 10 percent. The infra sector has been the backbone of the Indian economy, improving the nation’s overall development.
The country is enhancing its infrastructure to reach its 2025 economic growth target of USD ‘5 trillion’. Various initiatives like “Make in India” and the production-linked incentives (PLI) programs was launched by the Government to promote the expansion of the infra industry.
Listed below are stocks of three companies associated with the ‘Infrastructure’ sector that could grow their revenues/net sales by up to 25 percent in the coming two financial years, i.e., by the end of FY26:
Engineers India Limited
With a market capitalization of Rs 11,350.45 crores, the stocks of Engineers India Limited closed their trading session on Thursday at Rs 201.95, gaining approximately 1.10 percent as compared to the previous closing level of Rs 199.80 apiece.
Recently, ICICI Direct gave a ‘Buy’ recommendation on the company’s stock with a target price of Rs 240 representing a potential upside of around 20 percent compared to the prevailing share price level.
The rationale for providing such a recommendation pertains to the company’s healthy order book, recovery in the stress segments with a focus on foraying into newer growth segments, and many more.
In the research report, the Brokerage estimated the revenues of the infra company to grow at a compounded annual growth rate (CAGR) of around 11 percent to Rs 4,510 crores by FY26.
PNC Infratech Limited
With a market capitalization of Rs 11,214.61 crores, the stocks of PNC Infratech Limited closed their trading session on Thursday at Rs 437.15, gaining approximately 0.20 percent as compared to the previous closing level of Rs 436.45 apiece.
Recently, ICICI Direct gave a ‘Buy’ recommendation on the company’s stock with a target price of Rs 550 representing a potential upside of around 26 percent compared to the prevailing share price level.
The rationale for providing such a recommendation pertains to the consummation of asset monetization, decent order book numbers providing healthy revenue visibility, well-placed to fund Hybrid Annuity Mode (HAM) projects, and many more.
In the research report, the Brokerage estimated the revenues of the infra company to grow at a compounded annual growth rate (CAGR) of around 12 percent to Rs 9,760 crores by FY26.
Ahluwalia Contracts (India) Limited
With a market capitalization of Rs 6,834.07 crores, the stocks of Ahluwalia Contracts (India) Limited closed their trading session on Thursday at Rs 1,020.20, gaining approximately 0.20 percent as compared to the previous closing level of Rs 1,018.55 apiece.
Recently, ICICI Direct gave a ‘Buy’ recommendation on the company’s stock with a target price of Rs 1,260 representing a potential upside of around 24 percent compared to the prevailing share price level.
The rationale for providing such a recommendation pertains to the company’s strong order book driving its robust execution, favorable operating leverage conditions leading to margin improvements, and many more.
In the research report, the Brokerage estimated the revenues of the infra company to grow at a compounded annual growth rate (CAGR) of around 25 percent to Rs 5,494 crores by FY26.
Written by Amit Madnani
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