With government spending on infrastructure expected to increase by 11% compared to FY24, as mentioned in the recent budget, companies in this sector are poised to benefit, especially with additional private investment likely after the elections. Here are a few stocks to keep an eye on and add to your investment portfolio.
GMR Airports Infrastructure Ltd
GMR is India’s largest airport developer, involved in over 25 airport projects nationwide. They have significantly improved their operational efficiency, reducing debtor days from 55.7 to 20.1. Although they faced challenges like negative sales growth over the past five years and a high percentage of pledged promoter holdings, recent trends show a turnaround. They’ve seen 35% growth in the last twelve months and an increase in stock price over the past year of 74%.
Share price: Rs. 83.20
Market Cap: Rs. 50.16K Cr
IRB Infrastructure Developers Ltd
IRB is engaged in developing roads, highways, urban infrastructure, and other engineering projects, including airports and ports. The company boasts a healthy dividend payout of 47% and improved operational efficiency, with debtor days reduced from 64.4 to 37.4 and working capital days from 90.6 to 47.6. Despite a modest sales growth of 20.01% over the past five years, they are well-positioned for future gains.
Share price: Rs. 65.80
Market Cap: Rs. 39.86K Cr
HFCL Limited
HFCL specializes in telecom infrastructure, including the design, manufacture, installation, and maintenance of optical fiber cables, microwave radio, and power products. They also offer network engineering, project management, and system integration services. HFCL has shown a strong market presence, with stock price increases of 34% over five years and 38% over three years. Their profit growth is on an upward trajectory, with an 11% increase over the last three years and 10% growth in the past twelve months.
Share price: Rs. 95.85
Market Cap: Rs. 13.82K Cr
Rites Ltd.
Rites Ltd, a Government of India Enterprise under the Ministry of Railways, offers a wide range of services in transport infrastructure, rolling stock, consultancy, project management, and engineering services. Their net profit has increased over the last two quarters, from Rs. 101.15 Cr to Rs. 120.14 Cr, with an average quarterly growth of 15.8%.
Share price: Rs. 668.35
Market Cap: Rs. 16.02K Cr
Ircon International Limited
Ircon International Limited is a Government of India Undertaking under the Ministry of Railways. Ircon has demonstrated strong sales growth, with a 30% increase over the past twelve months, and consistent profit growth, with an 18% rise over the last three years. The company maintains a healthy dividend payout of 37.6% and shows strong market performance with high return potential.
Share price: Rs. 241.40
Market Cap: Rs. 22.71K Cr
