5 infra stocks under Rs 50 that could ride Modi's development agenda

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Here are 5 stocks largely from the Infrastructure space, which could get a big boost to their financial performance and then stock price, should Modi trigger his development agenda in the next few months.

Potential for turnaround

Gammon Infra is an infrastructure development company promoted by Gammon India. The company caters to infrastructure projects on PPP basis across sectors such as roads & expressways, ports, hydro power, urban infrastructure, airports, special economic zones, water and wastewater management, railways, power transmission lines, and agricultural infrastructure. The company has been loss making, but, the areas that it is in, one can expect it to ride on Modi's development agenda. The stock is trading at Rs 14.20 (FV Rs 2) and has the potential to double in the next couple of years.

Good order book position

Hindustan Construction Company (HCC) is associated with some of the most prestigious projects in the country, including the Bandra Worli Sea Link, Lavasa, Delhi Metro, Kolkata Metro, Mumbai Pune Expressway etc. The stock is currently trading at Rs 36 (Re 1 FV) and has only recently reported a profit. It has the potential to ride the Modi wave in the next few years.

Stock was subdued for long

IVRCL Infra is another company that is into infrastructure development. The stock is trading at Rs 28.75 and was up 7 per cent on Wednesday. Again a stock in the infra space that can benefit from infrastructure development push. 

Gammon India

Gammon India is one of the finest engineering and construction companies in the country. The company has been associated with Foundations of the Gateway of India, India's first cable-stayed bridge, The longest Railway Tunnel in Asia for Konkan Railway, Sharjah International Airport, Elevated viaducts for Delhi Metro Rail Corporation etc. The stock is a good long term bet at Rs 27.

Story first published: Thursday, May 22, 2014, 8:50 [IST]
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