Best Infrastructure Stocks to Buy in India – List of Top 10 Infrastructure Industry Shares of 2024Last Updated Date: Jan 02, 2024
Infrastructure is a great industry to learn about. As it is ever developing and also has a beneficial impact on the economy overall.
Investors are on the right page if they want to invest in the infrastructure sector. The blog is all about the infrastructure sector and stocks.
As the authorities cannot afford all the expenses, they choose to join hands with leading Infrastructure Companies in India.
Investors can read more about the Best Infrastructure Stocks to buy. They can choose to invest as per their budget.
Know about Infrastructure Sector in India
Infrastructure leads the Indian economy. The sector is mainly responsible for boosting the development. Top Infrastructure Companies in India are most likely to see a great demand in FDI.
Even though the industry was affected by COVID-19, it has a 50% increase in income annually. Additionally, the sector is likely to see some seasonal impact in terms of execution. But from the 3rd quarter, it will gain pace.
Hence traders must check the below listed Stocks to buy as the sector is about to grow.
Top 10 Infrastructure Companies in India
Check out the Infrastructure Share Price & Ranking of Best Infrastructure Shares to buy Today or Tomorrow or for Long Term –
The table above briefly mentions the Best Infrastructure Shares in India and their details.
Infrastructure plays a crucial role in the country’s development. As it lays a strong base for growth. It also takes the nation towards a multi-dimensional development.
Investors must look for the Best Infrastructure Shares in India as India’s infrastructure market is growing. It includes development of plenty of air terminal flyovers, quality streets etc.
When investors have a fair idea about the companies, they can have a look at Infrastructure Stocks List for Shares to Buy.
One needs to check various factors before investing in an infrastructure company. The parameters mainly include the company MCAP and six-month percentage change.
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Larsen & Toubro – Best Infra Stocks in India
Larsen & Toubro is undoubtedly a pioneer in the Indian Infrastructure market. It holds an experience for at least seven decades now.
It has also completed many projects like unique bridges, hydropower, nuclear power metros etc. The company is globally present in more than 50 nations.
They are one of the biggest road developers in India. It is undoubtedly one of the Best Infra Stocks in India. The company mainly engages in construction engineering and manufacturing activities globally.
The infrastructure includes construction of buildings and factories. It also Constructs transportation infrastructure, power transmission and distribution of water.
Furthermore, the company specializes in effluent treatment and material handling systems. The company’s power segment deals in turnkey solutions for coal-based thermal power plants like power generation equipment.
The heavy engineering department manufactures and supplies critical equipment to refinery chemical and petrochemical power industries.
Why invest in Lauren & Toubro stocks?
Generally, investors wish to have an attractive dividend share when investing in a company. For example, the dividend share for Larsen and Toubro is around 1.2%.
Even though it is not the highest, the payment history is great. The company can manage itself even in low economic conditions and the payout is reasonable. It is popular among investors.
Besides dividends, the return on equity plays a crucial role to understand if a company can generate sufficient profits and return.
A company is a high-quality business if it can achieve a high return on equity without any debt. Investors looking for growth can consider L&T as a great company as profit is likely to improve in a few years.
The future looks bright for Larsen and Toubro, but there are some risks that one must not ignore while considering Infrastructure shares to buy.
The primary risk factor here is that the dividend record is unstable due to a high level of debt. Additionally, there is a record of insider selling for quite some time now.
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GMR infrastructure – Best Infra Shares to Buy
In the Indian infrastructure market, GMR Infrastructure is one of the most popular companies.
The company has a great growth history after starting its operation back in 1978. It works in South Africa, Maldives, Nepal, Indonesia, Singapore and Turkey. The company has its headquarters in Bengaluru, India.
The company has five segments, including power airport road EPC and others.
The company’s revenue mainly comes from the airport niche. It has completed Indira Gandhi International Airport and Rajiv Gandhi International Airport.
Besides that, they have 13 power plants and nine highways. All of it makes the company one of the best infrastructure developers. It includes airport infrastructure development besides special economic zones.
Lastly, the company aims to develop successful projects that help it to rank in the best Infra Shares to buy.
Why invest in GMR Infrastructure stocks?
After considering various parameters, the experts say that GMR infrastructure has a lot of debt. However, one must understand the company’s balance sheet. The positive side about GMR is that it is trading at 47.3% below estimate.
Even though there is a lot of debt, the income can grow at least 16.85% annually. Hence, investors can consider it one of the infrastructure Stocks in India to buy.
GR Infraprojects – Top Infrastructure Sector Stocks
GR Infraprojects is ideally a road engineering construction and procurement company with amazing experience in construction. It also designs road highway projects.
The company’s projects are available pan India. it is also offering projects in the railway sector. By 2006 the company has completed around 100 road construction projects.
G.R. Infraprojects was set up in 1995 and is in Udaipur, India. It also holds experience developing national and state highways and airport runways, flyovers, tunnels and bridges.
The great experience makes them to climb to the list of Top Infrastructure Sector Stocks. It has mainly three operations: civil construction activities, road development, and manufacturing activities.
Under manufacturing activities the company offers thermoplastic metallic poles. Well, they make metal crash barriers, bitumen and road making paint.
Besides construction, the company also maintains infrastructure facilities, like routes transfer.
Why invest in G.R. Infrastructure stocks?
If investors plan to invest here, they need to understand that ROE or return on equity is important. The parameter gives an idea to investors about how much profit they will earn while they invest here.
Besides return on capital employed, the investors also need to understand the company’s debt.
The company’s debt to equity ratio is 1:14. Hence one can easily see that the company uses a high amount of debt to improve its income.
Lastly, they also need to consider Infra Share Price. Even though the ROI looks excellent, the high level of non-cash earnings make the stock weak for investment.
IRB Infra & Developer – Top Infrastructure Companies in India
The mid-cap company was set up in 1998. As of now IRB Infra & Developer is based in Mumbai, India. It has 23 projects in its name like 12975 kilometres of highways and roads.
The company is a subsidiary of Mhaiskar ventures Pvt limited. So, if one is looking for Top Infrastructure Companies in India, they can consider investing in this venture.
The company mainly engages in the development, construction, maintenance and operation of highways and roads. It works on operate transfer basis.
It generally works transfer projects and toll handling projects. Besides this, the company also has involvement in real estate development. It has electricity sales through windmills and airport infrastructure activities.
Why invest in IRB Infra & Developer stocks?
Before buying any shares, investors need to know about the growth of a company. It is always good to invest in a good company with a robust outlook at a cost-effective rate.
Experts say that the company’s earnings might double in the next five years. It indicates a positive earning.
Even though the earnings are forecast to grow at 53.6 percent per year, there are some risk signs that investors need to consider. Additionally, one must know about the Infrastructure Share Price.
The risk signs include unstable dividend records, and the interest payments are not clear. In addition, shareholders left in the past.
IRB Infra Stock predictions say that the stock prices will rise in the next few months.
KEC International – Infrastructure Stocks Share Price
KEC International is based in Mumbai and is a flagship company under the RPG group.
The company delivers projects in infrastructure segments, including civil railways. It also works for power transmission and distribution, smart infrastructure and cables.
It was set up in 1945: the engineering procurement and construction of a concept of commissioning. The venture holds great expertise in manufacturing in India. It also works in countries like Brazil and Mexico.
KEC International stabilise its place in the top infrastructure stocks list stocks in India. Furthermore, it deals with railway infrastructure EPC turnkey projects, including bridges, station platforms, tunnels, overbridges etc.
It also engages in many construction sites besides building factories, residential townships, warehouses, etc.
Why invest in KEC International stocks?
Investors need to consider the Infrastructure Stocks List Share Price and ROE. The company ROE is good and it has laid the base for minimum income growth.
It also pays a dividend on time that proves the company’s worth among investors.
In addition, it shows that the company is sharing its profits with the shareholders. The future payout ratio is likely to be approx 15% in the next three years.
Overall, the company’s growth is good, so investors can invest here. The venture is reinvesting a huge amount of the profit at a high rate of return. The risk here is an unstable track record for the dividend.
KNR Constructions – Top 10 Infrastructure Stocks
KNR constructions were set up in 1995. The huge infrastructure development company offers procurement engineering and construction services in many sectors.
These fast-growing niches include highways irrigation and urban water infrastructure management. It holds an amazing experience of more than twenty years for implementing technical and challenging projects.
The company has its base in Hyderabad. Being one of the Top 10 Infrastructure Stocks, one can consider buying the stock.
The company works on both individual and joint venture basis. It has worked hard in executing orders in different segments and regions of the country.
Today, it leads the industry to construct highways, roads, bridges, hybrid annuity models, and both. It took several efforts to rank as the best company which is the key factor behind their success.
Why invest in KNR Constructions stocks?
The company has a great performance, so it is worth the while to study its financial indicators in detail. KNR constructions have a growth of 20% as the company makes good strategic decisions.
In stock valuation, earnings play a vital role, but investors also need to consider the Share Price. Overall, the company’s performance is good, and there is a huge income growth.
But the stock price also depends on the risk. hence one needs to know it before investing in the company. The risks here include a high level of non-cash earnings.
PNC Infratech – Best Infrastructure Stocks to Buy
It is one the leading infrastructure construction development ventures in the Indian infrastructure sector.
It was set up in 1989 and is based in Agra. The company holds great exposure and can implement several infrastructure projects.
The company holds a record of completing successful projects across various geographies and sectors. Furthermore, it deals in engineering and construction solutions on item rate or turnkey basis.
The major infrastructure projects of the company are flyovers, airport runways, bridges, industrial area development and highways.
It holds amazing experience which makes the company one of the Best Infrastructure Stocks to buy.
The company offers construction projects services like annuity model bridges, power transmission projects and build, and transfer tasks.
Why invest in PNC Infratech stocks?
Ideally, PNC Infratech is not popular but it has led some gainers to a price growth in the past weeks. The company’s debt-equity ratio is 1.35, which makes it one of the best Infrastructure Shares in India.
Moreover, experts expect that the company’s earnings will be growing by the next year, that suggests a bright future.
The positive forecast can encourage investors to invest here. Hence they need to deep dive before making any decision.
Investors must know about all risk factors. The main risk factor here is that the debt isn’t included in the operating cash flow statement.
Rail Vikas Nigam – Top Infrastructure Stock to Buy
Rail Vikas Nigam was set up in 2003, and is based in New Delhi, India. The company is a part of the railway ministry, and it works on behalf of the ministry of railways.
Bharat Ratna PM is ideally a scheme that fills the gap of infrastructure deficit of the Indian Railways. Being a government company, investors can say it is a Top Infrastructure Stock to buy.
The company mainly deals in different types of railway projects. Besides manufacturing railways, bridges, and other elements the company executes metro project conversion.
It also deals with turn key-based concepts. They work in a complete cycle that includes planning at the start and commissioning at the end.
The stages include preparation, design estimates, calling and awarding contracts, contract management etc. It mainly serves the Indian Railways.
Why invest in Rail Vikas Nigam stocks?
Investors already keep a check on the financial matrices. However, while investing in Infrastructure Companies in India, they must consider the ROE.
It is important to know how its management is using its capital effectively. Overall, railway Vikas Nigam holds a greater ROI of around 7.7% in the industry.
It is undoubtedly positive, but one must know that positive ROI doesn’t always mean excellent financial performance.
Often when the market bids are up to a price, it reflects it. But investors also need to know the risk factor of an unstable dividend track record.
Rail Vikas Nigam Share Forecast suggests that it has very good future potential.
Sterling and Wilson – Infra Shares to Buy
The company was set up in 2011 and is based in New Delhi. It offers engineering procurement and construction services to various solar power projects. Globally it is one of the leading companies.
The amazing portfolio of solar power projects makes it to the Top 10 Infrastructure Shares to buy. The company mainly exports and imports solar modules, inverter structures and other elements
It also deals with maintenance and installation of solar power generating plants. Furthermore, it offers EPC solutions, including engineering procurement, project management, construction operations etc.
Why invest in Sterling and Wilson stocks?
Investors need to understand how the company is using the ROE. It is important to check if the company can bring good returns on investment or not.
Sterling and Wilson have a ROE of around 6.45%, in the construction sector. It is a positive sign, but investors need to know that a high ROE does not make any company amazing.
The company’s profits can grow in future, but investors also need to consider some investment risks while they consider Infra Shares to buy.
Additionally, the challenge for investor here is that the company’s earnings have minimized by at least 77.2% annually for the past five years.
Furthermore, the operating cash flow doesn’t include the debt.
Kalpataru PowerTrans – Top 10 Infrastructure Shares to Buy
Kalpataru PowerTrans is a part of Kalpataru group.
It was set up in 1969. The company is one of the best infrastructure construction and engineering companies. Furthermore, it executes marquee projects with unique abilities.
The company deals with EPC real estate in various infrastructure segments, including buildings and factories. Furthermore, it also deals with water and irrigation transmission and distribution roads and highways.
The company delivers an added perk with its highly efficient workforce, and it has a blend of research and engineering. It offers a maximum proposition to the customers.
Hence the company deserves to be a part of the Top 10 Infrastructure Shares to buy. It manufactures and fabricates transmission lines, including oil and gas infrastructure.
Lastly, the company offers EPC contracting services for terminals, gas gathering stations etc. Besides that, it provides services for executing bridge track liberation signaling and overhead electrification projects for railways.
Why invest in Kalpataru PowerTrans stocks?
The company is not one of the most popular stocks currently. But it has an increase in the share price of at least 10% in the past few months.
Due to which experts have not covered it in small-cap stocks. But the company’s unusual activities motivate the investors to invest in the stock.
So if investors are looking for Infra Shares to buy, they can consider investing here. Even though the stock is promising with earnings that look around 22.6% per year.
But there is also some risk factors, like unstable dividend track record and large items that affect the financial results.
Man InfraConstruct – Infrastructure Sector Stocks to Buy
If investors want to consider Infrastructure Sector Stocks to buy. They must consider Man InfraConstruct as one of the rising company. The company was set up in 2002 and are based in Mumbai.
Currently, it has executed many onshore projects related to infrastructure, including Mundra port, Jawaharlal Nehru Port and Chennai port.
The company works with many real estate developers in Mumbai in the niche. It offers construction services in five sectors like post infrastructure, commercial, residential road infrastructure etc.
Why invest in Man InfraConstruct stocks?
The company has a peer ratio of 36.88, which is relatively high. But the current ratio balances is around 7.45.
Hence it is a promising sector, but sales growth is poor. So investors should think about different factors before investing.
NCC – Infrastructure Companies Stocks
The company was set up in 1978 as a partnership company. Later it was converted into a public Ltd. company in 1990.
Besides the subsidiaries, it is referred to as a group that deals in infrastructure and also undertakes turnkey projects.
The company deals with EPC contracts. It works on a public-private partnership basis. Lastly, it also deals with roads, irrigation, railways, international metals mining power, other business sectors etc.
Why invest in NCC stocks?
While investing in stock, one needs to carefully understand the company’s financial condition. They need to know the profit and loss account and other ratios.
The company is not great for investment as it features an undervalued PE ratio of 12.172. Also it has the return on assets of 2.07% which is a bad sign for future performance.
But the investors need to check all the risk factors while investing in Infrastructure Companies Stocks.
Ircon International – Infrastructure Companies Share to Buy
Another Infrastructure Companies Share to Buy is IRCON International. The company was initially set up in 1986 as an Indian railway construction company private limited.
But now, it is a public Ltd. company having its headquarters in Delhi. The company deals with construction and Indian engineering.
It generally specializes in infrastructure projects like highways, flyovers, tunnels, bridges, runways, aircraft maintenance angles etc.
The company deals with commercial and residential properties while developing industrial areas.
For rail construction segment, the company works on a turnkey project. It deals with station buildings and facilities tunnels. Lastly, it builds new railway lines rehabilitating the conversion of current lines etc.
Why invest in Ircon International stocks?
The company has a poor return on assets i.e. 3.96% and the return on equity is 9.44%.
Higher the return, the better it is for investors. The company has zero-debt, which means it has minimum debt under capital. It is a great sign for investment.
Before investing, the traders also need to check the sales growth, which is minimum compared to its performance. Hence traders need to check all the factors before investing here.
H.G. Infra Engg. – Top Infrastructure Companies in India
The company was set up in 2003. Then, it was a private Ltd. company, but in 2017 it turned to public Ltd. company. The company has its headquarters in Rajasthan.
It deals with construction infrastructure, development, etc. The company has great experiences. It focuses mainly on road projects like bridges, highways, and flyovers.
Hence the projects spread across various parts of the country including Arunachal Pradesh and Uttarakhand.
The company deals in engineering procurement and construction services. It works on a fixed-sum turnkey basis. The infrastructure projects are based on item rate, and it deals mainly in the highway and road sector.
It also works for water pipeline projects like construction designing, maintenance and operation.
Why to invest in H.G. Infra Engg. Stocks?
While investing, the investor needs to check the financial information carefully. For example, the company speed ratio is 11.70, which is undervalued.
The best metrics include the debt to equity ratio, which is around 0.28. It means that the company has the minimum proportion of debt in its capital.
Additionally, the inventory turnover ratio is 18.48 shows positive relation to working Capital Management and inventory.
It proves that the management is good. Lastly, the sales growth is also great so traders can invest here. Hence it is one of the best Infrastructure stocks in India.
Nirlon – Top Infrastructure Stocks
In 1958, the company was a private limited company under Nanu Bhai industries. But in 1963, it started with a real estate business that made it a public limited company.
The companies mainly engaged in nylon tyre cord and tyre fabrics. The company deals with industrial fabric conveyor belts.
It ensures that it follows proper R&D support to upgrade the quality of the product, and the specifications must align with the latest needs.
The vast business support makes it one of the top Infrastructure Stocks List Stocks in India.
Why invest in Nirlon stocks?
The company has an excellent P.E. ratio of 28.26, high and overvalued. The company has a zero inventory turnover ratio, a risk factor for investors.
It shows that the company has inefficient management, and it also doesn’t perfectly go hand in hand with its working Capital Management.
How to find Infrastructure Stocks for Trading?
The infrastructure sector plays a crucial role in the seamless growth of the economy for trading.
Therefore, investors find it attractive to Trade in Infrastructure Stocks as the interest rates are low. There is also hope for amazing reforms.
But before investing in the industry, investors need to think about some factors. Investors need to understand various quantitative and qualitative factors.
It includes its physical assets and the relation between quality and stock valuation. Investors also need to consider the income and capital growth while investing in the infrastructure sector.
In addition, they must understand the market position while understanding its physical elements.
Lastly, one must consider the strategic point of view the infrastructure company. It includes operational quality of the management capital structure besides corporate governance.
How to Invest in Infrastructure Sectors Stocks?
To invest in Infrastructure Stocks, the investors need to consider the following steps.
Firstly the investors must have some documents for investing in stocks like their pan card, aadhaar card, or cancel cheques. These documents must verify their income.
Then, they need to open a Demat account to keep up the shares. The Demat account is an electronic account where a depository participant manages their stocks.
After verifying the documents, the executive will open an account for the shareholder. Then, shareholder can avail a unique Demat I.D. and access their Demat account online.
Top Infrastructure companies in India – Conclusion
These are the Top Infrastructure companies in India investors can consider investing in.
However, before investing in any company, one must go through their balance sheet and profit and loss statement. It helps them know where the company stands.
While investing in any industry, one must do some research. Investing is easy when investors understand the basic rules.
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