An all-time high need for strong infrastructure is being driven by the ongoing economic expansion of India. 2024 might prove to be a profitable year to invest in infrastructure stocks. Did you know that by next year, $1.4 trillion or 1,00,000 crores approximately is predicted to be invested in India’s infrastructure sector? The enormous development potential in this industry is highlighted by this astonishing amount.Here is a detailed overview of the best infrastructure stocks to buy in 2024.
What are Infrastructure stocks?
Infrastructure stocks encapsulate ownership in enterprises dedicated to constructing and sustaining vital physical structures and systems. This includes developing and maintaining crucial elements like roads, bridges, utilities, and transportation networks. Investing in these stocks offers a tangible stake in fostering societal development and maintaining the backbone of a nation’s fundamental infrastructure.
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Top 10 Infrastructure Stocks to Invest in 2024
- Larsen & Toubro Ltd
- GMR Airports Infrastructure Ltd
- IRB Infrastructure Developers Ltd
- Ircon International Ltd
- Rites Ltd
- G R Infraprojects Ltd
- HFCL Ltd
- Engineers India Ltd
- Reliance Industries Ltd
- Techno Electric & Engineering Company Ltd
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Overview of Best Infrastructure Stocks to Invest in India
Larsen & Toubro Ltd
Larsen & Toubro excels in global technology, engineering, and construction. It outperforms industry peers with a resilient order book of ₹327,354 crore, primarily from infrastructure projects, and a remarkable 19.26% ROE.
GMR Airports Infrastructure Ltd
GMR Infrastructure specialises in airports, power generation, coal mining, highway development, and unique economic zone management. Engaged in EPC contracting and construction, the company drives diverse infrastructure projects with expertise and commitment.
IRB Infrastructure Developers Ltd
Indian firm IRB Infrastructure Developers Ltd specialises in road construction, managing EPC, operations, and maintenance. Divided into BOT/TOT for maintenance and Construction for development, they oversee 12,000+ lane kilometres across 22 assets.
Ircon International Ltd
Ircon International Limited excels in engineering and construction, focusing on railways, highways, tunnels, and diverse infrastructure sectors. Boasting a remarkable 164.08% one-year return, it operates globally, executing projects through various modes and joint ventures.
Rites Ltd
RITES Limited, a leading public sector enterprise in India’s transport consultancy and engineering sector, is the exclusive export entity for Indian Railways. It offers rolling stock internationally, excluding Thailand, Malaysia, and Indonesia.
G R Infraprojects Ltd
G R Infraprojects Limited, an Indian company, excels in construction, operation, and manufacturing. With a 9.63 PE ratio, its core business spans road, railway, metro, airport, and optical fibre projects, including NH-16, NH-85, NH-102, NH-82, NH-80, and NH-8E (Ext.).
HFCL Ltd
HFCL Ltd, or Himachal Futuristic Communications Limited, a dynamic telecom infrastructure facilitator, participates in infrastructure development, system integration, manufacturing, and supplying advanced telecom equipment, optical fibre, and optic fibre cables (OFC).
Engineers India Ltd
Engineers India Ltd (EIL) is a global engineering consultancy and EPC company under the Ministry of Petroleum and Natural Gas. EIL specialises in oil & gas and petrochemicals and offers comprehensive services.
Reliance Industries Ltd
Reliance Infrastructure Ltd. is a notable infrastructure enterprise advancing power, roads, metro rail, airports, and defence projects through diverse Special Purpose Vehicles. It also plays a significant role in the utility sector, covering the entire power value chain.
Techno Electric & Engineering Company Ltd
Techno Electric & Engineering Company Limited, an Indian power-infrastructure firm, specialises in EPC services, energy generation, and corporate services across the power sector. It ensures a noteworthy 26.00% one-month return.
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Latest Performance of Top 10 Infrastructure Stocks
| Company Name | Mar Cap Rs.Cr. | ROCE % | CMP / BV | Debt / Eq
% |
ROE % | P/E | Div Yld % |
| Larsen & Toubro Ltd | ₹ 5,02,462 | 11.6 | ₹ 3,655 | 1.33 | 11.7 | 39.7 | 0.66 |
| GMR Airports Infrastructure Ltd | ₹ 51,788 | 4.49 % | ₹ 85.8 | 5680.5 | 0.06 | – | 0.00 |
| IRB Infrastructure Developers Ltd | ₹ 38,861 | 8.67 | ₹ 64.4 | 0.66 | 5.43 | 71.0 | 0.31 |
| Ircon International Ltd | ₹ 21,491 | 15.7 | ₹ 228 | 30.2 | 15.4 | 22.9 | 1.31 |
| Rites Ltd | ₹ 19,028 | 29.7 | ₹ 792 | 0.2 | 21.3 | 41.2 | 2.59 |
| G R Infraprojects Ltd | ₹ 12,203 | 21.6 | ₹ 1,262 | 93.1 | 26.1 | 10.5 | 0.00 |
| HFCL Ltd | ₹ 15,502 | 15.2 | ₹ 108 | 13.1 | 10.2 | 53.2 | 0.18 |
| Engineers India Ltd | ₹ 12,123 | 23.7 | ₹ 216 | 0.0031 | 18.4 | 23.3 | 1.39 |
| Reliance Industries Ltd | ₹ 20,17,630 | 9.14 | ₹ 2,982 | 36.1 | 8.94 | 28.9 | 0.30 |
| Techno Electric & Engineering Company Ltd | ₹ 8,037 | 8.18 | ₹ 747 | 0.00 | 9.91 | 40.5 | 0.80 |
Overview of the Infrastructure Industry in the Indian Market
India’s pursuit of economic superpower status centres on robust infrastructure growth. The government, aware of its catalysing impact on the economy, consistently amplifies the capital expenditure budget. India is the world’s third-largest construction market, with initiatives like the National Infrastructure Pipeline, Housing for All, PM GatiShakti, Cargo Terminals, and Smart Cities Project usher in substantial opportunities for infrastructure expansion, aligning with the nation’s ambitious goals.
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Advantages and Risks Associated with Investing in Infrastructure Stocks
- Stability and Growth
Infrastructure, integral for economic development, ensures portfolio stability with sustained demand, displaying resilience amid economic fluctuations. - Government Support
Infrastructure projects benefit from government initiatives and funding, providing stability and predictability to investments. - Long-Term Returns
Extended lifespans of infrastructure projects promise consistent returns over many years.
While the Infrastructure sector appeals to investors, regulatory uncertainties, project delays, and economic fluctuations can impact returns. Additionally, dependence on government support poses potential challenges for investors.
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- 20 Lac+ unique clients
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Why should you invest in Infrastructure stocks in India?
India’s economic growth is intricately tied to the vitality of its infrastructure sector. Despite a swiftly advancing economy, India faces a developmental gap in crucial areas like roads and railways.
The government’s proactive measures, particularly the production-linked incentive (PLI) schemes, herald a turnaround for infrastructure stocks. This strategic push catalyses GDP growth and addresses the pressing need for extensive infrastructure development in a dynamically growing nation, making it a suitable time for investors to capitalise on the sector’s potential.
How to Start Investing in Infrastructure Stocks?
SMC guides your investment journey, turning complexities into rewards within the dynamic infrastructure stocks sector.
Here are three easy steps to start investing in Infrastructure stocks:
- Go to the official website of SMCtradeonline or simply download the SMC ACE App
- Open a free demat account
- Start investing
Conclusion
In the dynamic landscape of 2024, investing in India’s thriving infrastructure sector emerges as a strategic opportunity for financial growth. The government’s unwavering commitment, evident through substantial budget allocations and progressive initiatives, positions infrastructure stocks as a cornerstone for stability and long-term returns. The top 10 infrastructure stocks showcased robust prospects in diverse sectors, enticing investors seeking a foothold in India’s ambitious growth trajectory.
Author: All Content is verified by SMC Global Securities.
As a reliable guide, SMC facilitates this investment journey, transforming complexities into rewards. As India charts its course towards economic supremacy, infrastructure stocks are a promising avenue for investors poised for success.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
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