India’s infrastructure is steadily growing to match that of developed countries, particularly in terms of travel, transportation, and more.
It is in this space that you will find some of the best infrastructure stocks in India thriving.
These stocks are characterized by a longstanding track record and in this blog, we’ve compiled a list of such top infra stocks.
Top 10 Infrastructure Stocks in India
Here are the best infrastructure stocks in India that enjoy great popularity with investors. [Stock price data as of October 2023]
1. Larsen & Toubro (L&T)
L&T is an infrastructure company known for its execution prowess and resilient business model.
Its diverse portfolio covers critical segments like construction, engineering, and technology services.
L&T continues to leverage technological innovations and a robust project pipeline to grow into renewable energy and smart city projects.
- Larsen & Toubro Stock Price: Rs. 3,065.00
- Market Capitalization: Rs. 3,72,540 Cr
Some of the well-known projects by L&T include the following:
- Mumbai International Airport
- Statue of Unity
- Narendra Modi Stadium
2. HG Infra Engineering
HG Infra Engineering is particularly known to excel in road construction and highway projects.
Its strengths include quality of construction and timely completion of infra projects, especially when it comes to roads and highways.
- HG Infra Engineering Stock Price: Rs. 942.20
- Market Capitalization: Rs. 6,145.64 Cr
Since its debut in 2003, HG Infra Engineering has completed some famous highway projects such as:
- Delhi – Vadodara (PKG-4, PKG-8)
- Chittorgarh-Udaipur
- Gurgaon – Sohna
3. ABB India
Just like its parent company ABB, its Indian division is known for electrification, industrial automation, motion, and robotics.
The company drives growth through a diverse portfolio of offerings pegged to the motive of sustainable yet smart solutions.
You could say that the company is playing a part in India’s ambitious industrial revolution.
- ABB India Stock Price: Rs. 4,084.15
- Market Capitalization: Rs. 95,833.40 Cr
The following list includes some of ABB India’s famous electrification and other projects:
- Kanpur, Kochi, and Bengaluru Metro (power supply – electrification)
- Chennai Metro (ventilation – electrification)
- Indore Smart City (digital tech solutions)
- Deccan Fine Chemicals (automation)
4. Nirlon
Nirlon specializes in developing industrial parks and IT spaces. When you think about India’s growing workforce and need for offices, Nirlon’s business and project.
Nirlon’s focus on modern, state-of-the-art facilities ensures continued relevance and expansion.
- Nirlon Stock Price: Rs. 409.10
- Market Capitalization: Rs. 3,662.48 Cr
Staying on brand for the infra company, Nirlon’s most famous project is the Nirlon Knowledge Park located in Mumbai.
5. Indian Hume Pipe
Indian Hume Pipe (IHP) leads in water supply and sewage solutions, primarily supplying concrete tubes called Hume Pipes.
These pipes and similar products are crucial for an array of infra projects related to water supply, drainage, and others.
IHP’s execution capacity and the increasing demand for better infrastructure means that the company is likely to play a role in the future success of sanitation and water management.
- Indian Hume Pipe Stock Price: Rs. 243.60
- Market Capitalization: Rs. 1,508.02 Cr
Some of the highlights of IHP’s projects include the following:
- 135,000 MT steel penstock installed for 50+ hydro projects
- Executed crucial projects such as 7.80 M penstock for Almatti Dam and 10.15 M liners for Nathpa Jhakari Dam
6. Adani Ports & SEZ (APSEZ)
APSEZ is considered to be a leading port developer and operator known for its proficiency in its operations.
With the extension of its services into logistics and warehousing, APSEZ is making a strategic move towards diversification.
The prospects for APSEZ’s expansion in the fields of maritime commerce and specialized economic zones are indeed impressive.
- Adani Ports & SEZ Stock Price: Rs. 800.00
- Market Capitalization: Rs. 1,70,845.00 Cr
Some of the highlights of Adani Ports & SEZ’s operations include:
- 13 ports & terminals (owned and operated)
- Mundra SEZ (India’s first SEZ based out of a port)
7. IRCON International
IRCON International is a Government undertaking operated by the Indian Railways.
It has a proven record in infrastructure project execution with a special focus on railways, highways, and electrification projects.
- IRCON International Stock Price: Rs. 134.50
- Market Capitalization: Rs. 10,016.50 Cr
Some of IRCON International’s completed projects include the following:
- Rail Coach Factory – Raebareli
- Quaziguna-Baramulla Broad Guage Rail Link
8. RITES
RITES or Rail India Technical and Economic Service is a PSU (Ministry of Railways) that is known for its infra projects in Railways, Highways, Bridges, and Tunnels.
With India’s focus on improving transport infrastructure, RITES’s unique strengths assure a promising growth trajectory.
- RITES Stock Price: Rs. 470.50
- Market Capitalization: Rs. 11,306.20 Cr
RITES has been involved in these projects, including many others:
- Bogibeel Rail-cum-Road Bridge, Dibrugarh (Consultancy)
- Ahmedabad Metro – Phase I (Consultancy)
- Customized Cape Gauge DEMUs to CFM, Mozambique (Export)
9. KNR Constructions
KNR Constructions is primarily involved in roadway and irrigation infrastructure projects.
Known for execution excellence and timely delivery, it plays a vital role in India’s infrastructural development.
As the government intensifies efforts in rural development and connectivity, KNR Constructions is aiming for continued growth.
- KNR Constructions Stock Price: Rs. 279.90
- Market Capitalization: Rs. 6,836.81 Cr
KNR Constructions has been involved in these projects and more:
- Bijapur-Hungund Highway Project (Laning)
- Nagaon-Dharamtul National Highway (Widening)
- NH8 – Surat-Manor (Upgrading)
10. Power Mech Projects
Specializing in power plants and infrastructure, Power Mech offers mechanical engineering services.
With a focus on innovation and sustainability, the company is poised to capitalize on the growing demand for energy-efficient solutions,
- Power Mech Projects Stock Price: Rs. 4,040.40
- Market Capitalization: Rs. 5,886.97 Cr
Here are some of the projects Power Mech’s been involved in:
- 800 MW Supercritical Unit, CGPL, Mundra
- Two Ultra Mega Power Projects
Factors to Consider Before Investing in Infrastructure Stocks
Let’s have a look at some of the crucial factors you must consider before investing in the top infrastructure stocks in India –
1. Economic Conditions
Consider the macroeconomic environment when investing in infrastructure stocks.
A thriving economy can indicate that the best infrastructure stocks in India are primed for growth.
2. Government Policies
Infrastructure is a crucial factor in the nation’s development and thus, it is subject to various policies, regulations, reforms, and more.
You must always ensure that you keep an eye on these developments as they have may a direct impact on a company’s operations and revenue.
3. Financial Health
You must always look beyond the immediate prospects of a company, like a positive sound bite on social media, and thoroughly analyze its financial health.
A strong balance sheet, steady cash flow, and good credit ratings often imply that the company can weather economic downturns.
4. Diversification
A company with a diverse project portfolio can provide stability against market volatility.
Companies engaged in different infrastructure sectors or geographies may present robust investment opportunities.
Conclusion
Infrastructure is a sector that is primed for growth but faces challenges, some operational while others are macroeconomical.
The best infrastructure stocks mentioned above have a track record of excellence but are prone to the same limiting factors as the broader sector.
Successfully investing in infra stocks requires you to carefully evaluate each company, the sector, and other factors like regulations.
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Disclaimer: The stocks mentioned above are not to be construed as investment advice. Investors/traders must conduct their own research before investing in any stock, commodity, currency, or derivative.
