The infrastructure sector in India is an important driver of the country’s economic growth. Infrastructure stocks in India refer to companies involved in developing and operating infrastructure projects such as roads, bridges, airports, and power plants. The infrastructure stocks in India offer promising investment opportunities.
Moreover, Infrastructure stocks are expected to be a significant area of focus in the upcoming budget of 2024. The sector is expected to receive substantial allocations for capital expenditure, particularly in areas such as roads, railways, and urban infrastructure.
Listed below are such Infrastructure stocks whose PE is less than the Industry:
KNR Constructions Ltd
With a market capitalization of Rs. 10,029 crores, the shares of KNR Constructions started Friday’s trading session on a higher note at Rs. 362.95 compared to its previous close of Rs. 359.55. During the trading session, the shares hit a low of Rs. 348.20, losing around 3 percent and closed the day at Rs. 351 apiece.
Looking at the company’s financial statements, the revenue zoomed by 42 percent from Rs. 996.01 crores during the December quarter to Rs. 1,414 crores in the March quarter. In addition, the net profits magnified by 141 percent from Rs. 135.84 crores to Rs. 327.51 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 21.87 percent and a return on capital employed (RoCE) of 22.02 percent for the period spanning FY23-24. Moreover, the stock might be deemed undervalued, given its PE ratio of 13.2 times, in contrast to the industry average of 21 times.
As of March 31, 2024, the company holds a strong order book totalling Rs. 5,304 crores. Of this amount, 39 percent of orders pertain to Roads (HAM) projects, 19 percent to Irrigation projects, 21 percent to other projects, and the remaining 21 percent is earmarked for future projects in the pipeline.
G R Infraprojects Ltd
With a market capitalization of Rs. 16,918 crores, the shares of G R Infraprojects started Friday’s trading session on a higher note at Rs. 1,767.85 compared to its previous close of Rs. 1,750.80. During the trading session, the shares hit a high of Rs. 1,771.70, gaining around 2 percent, also recorded as the company’s fresh 52-week high and closed the day at Rs. 1,757 apiece.
Coming onto the company’s financial statements, the revenue jumped by 16 percent from Rs. 2,134.02 crores during the December quarter to Rs. 2,485.12 crores in the March quarter. In addition, the net profits magnified by 128 percent from Rs. 242.88 crores to Rs. 553.09 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 17.43 percent and a return on capital employed (RoCE) of 17.98 percent for the period spanning FY23-24. Moreover, the share can be considered to be undervalued as the PE ratio stands at 15.6 times compared to the industry average of 21 times.
As of March 31, 2024, the company holds a robust book totalling Rs. 21,011 crores. Out of these, 39 percent of orders were received from elevated corridors or flyovers, 24 percent from roads and road tunnels and the remaining 37 percent from water, civil, metro elevated and metro undergroundv segments.
Ramky Infrastructure Ltd
With a market capitalization of Rs. 4,191 crores, the shares of Ramky Infrastructure started Friday’s trading session on a lower note at Rs. 588.05 compared to its previous close of Rs. 594.90. During the trading session, the shares hit a high of Rs. 624.25, gaining around 3 percent and closed the day at Rs. 611 apiece.
Looking at the company’s financial statements, the revenue zoomed by 32 percent from Rs. 440.72 crores during Q3FY24 to Rs. 581.19 crores in Q4FY24. On the other hand, the net profits surged by 53 percent from Rs. 37.66 crores to Rs. 57.5 crores during the same timeframe.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 17.97 percent and a return on capital employed (RoCE) of 23.43 percent for the period spanning FY23-24. Moreover, the stock might be deemed undervalued, given its PE ratio of 13.7 times, in contrast to the industry average of 21 times.
Furthermore, the order book position of the company currently stands at Rs. 9,300 crores.
Brahmaputra Infrastructure Ltd
With a market capitalization of Rs. 252 crores, the shares of Brahmaputra Infrastructure Ltd started Friday’s trading session on a higher note at Rs. 94.97, gaining around 6 percent compared to its previous close of Rs. 84.97 and closed the day at Rs. 89.21 apiece.
Looking at the company’s financial performance, the revenue increased by 2 percent from Rs. 52.89 crores during the December quarter to Rs. 54.01 crores in the March quarter. On a contrasting note, the net profits decreased around 15 percent from Rs. 5.27 crores to Rs. 4.49 crores during the same timeframe.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 9.92 percent and a return on capital employed (RoCE) of 8.43 percent for the period spanning FY23-24. Additionally, the share can be considered to be undervalued as the PE ratio stands at 15 times compared to the industry average of 21 times.
As of May 2024, the consolidated order Book along with its Joint Venture / Operation partners of Brahmaputra Infrastructure Ltd was approximately Rs. 1,150 crores, which is 4.56 times its market capitalization. The company has a strong foothold in diverse infrastructure sectors, including bridges, flyovers, highways, airports, buildings, tunnels, and mining projects, with a focus on EPC and real estate development business.
Written By Vaibhav Patil
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