Sharekhan Lists 2 Midcap Stocks From Infra Sector With Buy Rating, Likely To Give Strong Return

Sharekhan in its recent report on the infrastructure sector has assigned a Buy on 2 Midcap stocks from the sector. The brokerage has picked KNR Construction Ltd. and PNC Infratech Ltd., claiming a robust upside of up to 29% from the current level.

Sharekhan believes, Infrastructure remained a mixed bag although order book & revenue guidance for FY2024 remained intact.

Infrastructure a mixed bag

According to brokerage, The infrastructure sector reported a mixed performance with PNC Infratech reporting beat on earnings while KNR lagged. Both KNR and PNC Infratech ended FY2023 on a healthy order book of 2.4x and 3x TTM standalone revenues respectively. Healthy order book and optimistic order intake expectations for FY2024 has led to both companies retaining their FY2024 guidance.

1. KNR Construction Ltd.

Sharekhan has placed a target price of Rs. 301 apiece to the stock, claiming a potential upside of 29% from its current level. The stock's current market price on NSE is Rs 234.15 apiece.

The stock declined 6.82% in 1 week, and 3.5% in 1 month, respectively. It has fallen 6.62% in 1 year. However, it gave a positive return of 137.11% in 3 years, while in 5 years, it gave 65.8% positive return.

The stock traded the 52 week high on 14 March 2023 at Rs. 280.80 apiece and 52-week low on 20 October 2022 at Rs. 202.70 apiece, respectively.

2. PNC Infratech Ltd.

Sharekhan has assigned a Buy on the stock with a target price of Rs. 390 apiece, claiming a potential upside of up to 23% from the stock's current level. The stock last traded at Rs. 318.90 apiece on NSE.

It jumped 0.71% in 1 week, while 3.46% in 1 month. It has given 25.56% positive return in 1 year. In 3 years, it gave 158.03% positive return. In 5 years, it gave 84.76% positive return.

On 17 June 2022, the stock recorded its 52 week low at Rs. 219 apiece and on 03 February 2023, 52-week high at Rs. 352 apiece, respectively.

Disclaimer - The stocks have been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.