6 Infrastructure Stocks Showing Rising Trend Amid Govt Push For Higher Spends, Buy

5 stocks are showing potential to soar as the government has decided to continue its infrastructure push. The move could bring focus to stocks like Larsen & Toubro Ltd, IRB Infrastructure Developers, Ashoka Buildcon, KNR Constructions, ABB India, and Thermax. If you buy these stocks now, you can expect to get a likely return of 164%.

According to report, Finance Minister Nirmala Sitharaman declared hiking capital expenditure by 33% to Rs 10 lakh crore for infrastructure development for 2023-24 and will be at 3.3 per cent of GDP. Check details pertaining to these stocks.

1. Buy Larsen & Toubro Ltd

HDFC Securities has assigned buy call to Larsen & Toubro Ltd with target price of Rs 2432 apiece. If you buy Larsen & Toubro Ltd now at the last trading price of Rs 2166.80 apiece, you will get likely return of 12%.

The company has a market capitalisation of Rs 3,04,514.30 crore. The large cap stock gave 12% return in 1-year and 68% in last 3-years.

HDFC Securities in its January 31, 2023 report stated, "Given: (1) the record-high order book (OB) of INR 3.9tn; (2) bottoming out of infra margins; and (2) the improving health of the Hyderabad metro project, we maintain BUY with an increased TP to INR 2,432/sh (22x core Dec-24 EPS)."

2. Buy IRB Infrastructure Developers

Brokerage firm Ventura assigned buy call to IRB Infrastructure Developers with a target price of Rs 729 apiece. Current market price of the stock is Rs 276 apiece.

If you buy IRB Infrastructure now, you can expect to receive a likely return of 164%. The mid cap company has a market capitalisation of Rs 16,667.64 crore. The stock gave a return of 18% in last 3-months, declined 5% in last 1-year, and gave again a return of 164% in last 3-years.

According to brokerage firm Ventura, in its brokerage report dated Oct 14, 2022, "We initiate coverage on IRB with a BUY for a PT of INR 729.2 (SOTP methodology) representing an upside of 239.2% over the next 30 months. Low traffic growth due to a fall in economic activity remains the key risk which is inherent to the road business."

3. Buy Ashoka Buildcon

HDFC Securities has maintained buy call for Ashoka Buildcon with a target price of Rs 134 apiece. Last trading price of the stock is Rs 78.15 on BSE.

If you buy Ashoka Buildcon now, you can expect to receive a return of 72%. The company has a market capitalisation of Rs 2,193.85 crore. The mid cap stock declined 20% in last 1-year.

According to HDFC Securities, it its report dated November 14, 2022, "Ashoka Buildcon (ASBL) reported revenue/EBITDA/APAT of INR 12.8/1.1/0.7bn, missing our estimates on all fronts. We maintain BUY, with a reduced TP of INR 134/sh (9x Sep-24E EPS rollover)."

4. Buy KNR Constructions

Motilal Oswal has recommended buy call for KNR Construction with a target price of Rs 310 apiece. Last trading price price of KNR Construction is Rs 256.40 apiece. If you buy KNR Construction now, you can get a potential return of 21%.

The mid cap stock has a market capitalisation of Rs 7,210.86 crore. It gave a return of 81% in last 3-years and declined 17% in last 1-year.

5. Buy ABB India Ltd

ICICI Direct has maintained buy rating for ABB India Ltd with a target price of Rs 3635 apiece. If you buy ABB India at last trading price of Rs 2801 apiece, you may get a potential return of 30%.

The company has a market capitalisation of Rs 59,369.31 crore. The large cap stock rallied 21% in last 1-year and declined 13% in last 3-months. In last 3-years, the return is 117%.

ICICI Direct in its brokerage report date November 16, 2022 said, "We remain long term positive and retain our BUY rating on the stock. We value ABB at Rs 3635 (70x on CY24E EPS). ABB reported a strong performance in Q3CY22."

6. Buy Thermax

ICICI Securities has recommended investors to buy Thermax with a target price of Rs 2480 apiece. Last trading price of the stock is Rs 1919.30 apiece.

If you buy Thermax Ltd now, you can get likely return of 29%. The company has a market capitalisation of Rs 22,869.67 crore. The mid cap stock declined 13% in 3-months, 5% in last 1-year, and rallied 85% in last 3-years.

Leading brokerage firm ICICI Securities, upgraded Thermax from add to buy with a target price of Rs 2480 apiece. According to the analyst in its December 6, 2022 report, "We upgrade our rating on the stock to BUY (from Add) due to recent correction in stock price (~15% fall over 3 months). While we maintain our target price of Rs2,480."

Disclaimer

The stocks have been picked from the brokerage report of ICICI Direct, ICICI Securities, Motilal Oswal, HDFC Securities, and Ventura. Greynium Information Technologies, the Author, and the respective Brokerage Houses are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.