The infrastructure sector is a key driver of the Indian economy. This sector plays a highly responsible role in propelling India’s overall development and receives intense focus from the government to initiate policies that ensure the time-bound creation of world-class infrastructure in the country.
This sector encompasses power, bridges, dams, roads, and urban infrastructure development. In simpler terms, the infrastructure sector acts as a catalyst for India’s economic growth, driving the expansion of allied sectors such as townships, housing, built-up infrastructure, and construction development projects.
The government’s dedication to building the infrastructure of the future has been evident through the array of initiatives launched recently. Providing infrastructure support to the nation’s manufacturers also remains a top agenda, as it will significantly transform the movement of goods and exports, rendering freight delivery efficient and economical. Prime Minister Narendra Modi also recently reiterated that infrastructure is a crucial pillar to ensure good governance across sectors.
Today, we are going to explore the performance of infrastructure companies, both in terms of their fundamentals or financial reports during the June quarter, and how the stocks of these companies have performed over the last three months. The list is synchronized according to the net profit reported by these companies in Q1 FY24.
|
Company Name |
CMP Rs | M Cap Rs in Cr | Revenue Rs in Cr | Operating Profit Rs in Cr | Net Profit Rs in Cr | 3mth return % | 1Yr return % |
| Larsen & Toubro | 2,671.85 | 3,75,547.98 | 47,882.37 | 6,316.36 | 3,095.59 | 21.83 | 41.56 |
| Adani Ports | 861.90 | 1,86,182.40 | 6,247.55 | 3,689.33 | 2,119.38 | 19.48 | 2.13 |
| Ircon International | 111.90 | 10,524.35 | 2,717.15 | 204.38 | 187.37 | 35.56 | 171.96 |
| Engineers India | 153.75 | 8,641.39 | 818.27 | 71.01 | 138.93 | 39.89 | 129.90 |
| IRB Infra Development | 26.80 | 16,184.50 | 1,634.22 | 724.33 | 133.77 | -0.37 | 10.10 |
| Rites | 480.80 | 11,553.71 | 544.35 | 161.26 | 119.58 | 26.63 | 68.45 |
| J Kumar Infra | 406.20 | 3,073.52 | 1,131.32 | 161.91 | 72.83 | 54.25 | 34.88 |
| Ashoka Buildcon | 103.56 | 2,907.15 | 1,935.16 | 473.30 | 71.98 | 27.97 | 31.40 |
| ISGEC Heavy | 714.65 | 5,254.78 | 1,385.76 | 103.54 | 52.53 | 45.70 | 57.07 |
| WPIL | 3,119.95 | 3,047.27 | 357.71 | 66.34 | 40.43 | 1.78 |
197.30 |
The above data indicates that Larsen & Toubro Ltd holds the top position in terms of market capitalisation, revenue, and profitability reported during the first quarter of FY24. The stock has also generated an impressive return of 22% in just three months.
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The second runner-up in terms of revenue is Adani Ports Ltd, which reported Rs 6247.55 crore in the June quarter of the first financial year.
Among the top-performing stocks, the stocks of J Kumar Infra Ltd have generated a remarkable return of over 54% in just three months. Meanwhile, ISGEC Engineering has achieved an impressive return of 45%, making it the second-best performer in terms of stock returns over the last three months.
Looking at the longer-term horizon, WPIL secured the top position by generating a 197% return in just one year, while Ircon International has achieved an impressive return of 172% during the same period.
However, some company stocks have not performed well in the last three months, namely IRB Infra and WPIL Ltd, generating almost flat returns of 1% and 2% during the same period.
Infrastructure always remains a core area for every nation, and these companies consistently announce new order wins. Investors must keep track of orders announced by these companies to stay updated about their growth in the order book.
