BUDGET 2024: TOP FIVE INFRASTRUCTURE STOCKS TO BUY BEFORE 1ST FEBRUARY

Summary

The Bharatiya Janata Party’s victory in the state assembly elections has shown a Positive effect in the Indian Stock Exchange. As the Union Budget is also in line, Union Finance Minister Nirmala Sitharaman will rise up in the Lok Sabha to present the Union Budget 2024-25. It will be an interim Budget as the Lok Sabha Elections are due Early next year. It is pertinent to know about some Stocks to invest in before the announcement of the Union Budget. The stocks which will be discussed in the article may show Bull effect in the FY 2024-25.

The Bharatiya Janata Party’s victory in the state assembly elections has shown a Positive effect in the Indian Stock Exchange. As the Union Budget is also in line, Union Finance Minister Nirmala Sitharaman will rise up in the Lok Sabha to present the Union Budget 2024-25. It will be an interim Budget as the Lok Sabha Elections are due Early next year. It is pertinent to know about some Stocks to invest in before the announcement of the Union Budget. The stocks which will be discussed in the article may show Bull effect in the FY 2024-25.

GROWTH IN INFRASTRUCTURE DEVELOPMENT

The Ministry of Road and Development had shown an effective growth in the Infrastructure Development sector in India. Since the year 2018 the Budget of Road and Infrastructure Development has increased from 60,000 crores to 2,70,000 crores in 2023. The government is also planning to increase the Budget by 25% in the FY 2024-25. Various projects have been successfully developed by the ministry in the past few years. One such project is Delhi-Mumbai Roadway which had costed the Government around one lakh crore rupees. Earlier, this year Mr. Nitin Gadkari, Roads and Highways Minister announced to build at least 350 tunnels at an additional cost of ₹1 lakh crore. These Road and Transport developments will be going to directly benefit the road construction companies and the persons holding the shares of these companies. As the interim Budget will be announced in the month of February, it is expected that the Modi Government will be allocating more funds for the construction of the roads and the Highways. The road construction or an Infrastructure Development is one such sector which always keeps on showing a positive effect on the Market and will never be sinking. These reasons give us the hint in investing in Infrastructural Development companies in order to earn and get benefit from the most of it. So, now let us discuss some major construction companies which are having the best order book of construction project and are the best performing construction companies which will be going to show the bull effect in the next coming six months. So, let’s learn and invest in these companies before its too late for you.

TOP FIVE COMPANIES TO INVEST IN

      1.  NCC Limited- NCC Limited, a leading infrastructure firm, showcased exceptional fiscal performance in FY 2022-2023. Their diverse project portfolio across sectors resulted in a robust annual order inflow of 25,895 crores, underlining substantial client confidence. The company's order book surpassed 50,000 crores, indicating a promising growth trajectory. This performance translated into a notable 40% increase in consolidated revenue, reaching 15,701 crores, showcasing strong revenue growth potential. Notably, the order book exhibited a remarkable 54% surge, propelling a significant 36% rise in the company's share prices over the last six months. Operating across 13 states in India, NCC's esteemed clientele includes entities such as the Airports Authority of India and National Highway Authority of India, reinforcing their market presence and credibility. The current order book's robustness positions NCC favorably for sustained growth and promising investment opportunities. Investors can also have a look at certain key indicators of the company in the following chart all the figures mentioned are in crores.

       2.  Hai Ircon International- Established in 1976 under the Indian Companies Act, IRCON International Limited is a pioneering entity in transport infrastructure. Originally focused on railway projects, it expanded globally, undertaking over 1650 projects in India and 900+ across 31 countries. With more than 70% government ownership, IRCON ranks among the Top 250 International contractors. Known for overcoming challenging terrains, IRCON offers investors a solid opportunity in the thriving transport infrastructure sector. The company’s pevenue from operation for the academic year 2022-23 include 9,921 crore and other key indicator of the company are as mentioned in the given table.

      3.  PNC Infra Tech Limited- The company is recognized as a leading Indian infrastructure enterprise, specializes in investment, development, construction, and management within the country. Their expertise extends across critical infrastructure sectors, encompassing expressways, highways, bridges, airport runways, water supply, industrial area development, and various other projects. The company has delivered more than 60 Highway Projects and its order book also shows the growth of 20% in the first quarter. And NHAI is the main client base of the company. The key indicator of the company is as mentioned below.

     4. G R Infra Projects Limited- Incorporated in the year 1995, G R Infra projects Limited is an integrated road Engineering, Procurement, Construction company (EPC) with experience in the design and construction of various road/highway projects across 15 States in India. It mainly undertakes civil construction projects under the EPC and BOT (Build Operate Transfer) basis in the road sector. The company is present in 16 states and its major client base includes the Central Government through which the company earns its more than 75% of the Revenue. Certain key indicators of the company are as mentioned here.

    5. Larsen and Turbo- Larsen & Toubro Ltd (L&T)-  an Indian multinational conglomerate, commands a prominent position across diverse sectors including engineering, construction, manufacturing, technology, IT, and financial services. Headquartered in Mumbai with technical services centered in Chennai, L&T holds a significant place among the world's top five construction companies. Founded by Danish engineers Henning Holck-Larsen and Søren Kristian Toubro, the company traces its roots to their refuge in India. As of March 31, 2022, the L&T Group comprises a robust network of 93 subsidiaries, 5 associate companies, 27 joint ventures, and 35 jointly held operations. Its extensive operations span across basic and heavy engineering, construction, realty, capital goods manufacturing, IT, and financial services. Renowned as one of India's largest construction companies, L&T boasts an impressive Order Book valued at 4.5 Lakh crore rupees. This substantial figure underscores the company's substantial presence, robust financial stability, and formidable position within India's construction and engineering landscape. For investors seeking involvement in a diversified and well-established conglomerate, L&T stands as a cornerstone of reliability and expansive growth potential.