ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Market ends with marginal cuts this week; FMCG gains, Consumer Durables decline—What should investors do on Monday?
  • Investors with short term view must book profits now; import duty hike, rupee weakness may arrest price correction, temporarily
  • Virtual Digital Assets: VDAs to attract 1% TDS from today; know what CBDT says about new norms
  • Maruti Suzuki, Ashok Leyland: What makes brokerages bullish on these auto stocks?
  • Monsoon session of Parliament to begin on July 18; to end on August 12
Read in App
Business News » India News

Road to become rich! These five construction stocks can give 5% to 56% return on your money

Analysts at IDBI Capital states while giving positive outlook that, earnings progression of companies will remain robust despite several near term headwinds like ensuing elections and liquidity crunch.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Road to become rich! These five construction stocks can give 5% to 56% return on your money
Road construction stocks are seen as money making magnets ahead. Photo: Pixabay

The beginning of Monday’s trading session was not positive, as investors continued to remove their money from midcap, smallcaps, large caps and major sectors like auto, banking, FMCG, energy, consumer durables and IT. Both Sensex and Nifty 50 have given away over 400 and 100 points, respectively. In this situation, it is of utmost important to chose your stock investment wisely. As nobody likes to make a bad decision and not gain any money on equities. Having an appetite for stocks is a gamble in its own, but staying focused with good and appealing stocks in long-term is risk worth taking for. Interestingly, road construction stocks are seen as money making magnets ahead. Analysts at IDBI Capital state while giving positive outlook that, earnings progression of companies will remain robust despite several near term headwinds like ensuing elections and liquidity crunch.

Mangesh Bhadang, analysts at IDBI Capital said, “Construction sector especially road construction is still an evolving sector in India. Globally, private participation in construction activity is high and various financial models have been evolved for asset ownership. In India, private participation in government projects started only over the last decade.”

Bhadang added, “We believe that after learning invaluable lessons over the years, the authorities have been able to wither out various flaws in the models and systems used to award and construct road projects. Going forward, we expect the volatility in awarding activity to reduce and execution to pick up which will benefit most private players. As a result of earnings volatility, we believe that investing in construction companies is more like a steeplechase than a smooth run.”

According to IDBI Capital these 5 construction stocks can become your top picks for investment:

Ashoka Buildcon – BUY – TP – Rs175 (Upside – 56%): Ashoka Buildcon Ltd (ASBL) is well poised to deliver strong revenue growth of 31.3% over the next three years against meager growth of 7.5% reported over the past three years. Current order book of Rs95.4bn as of Q3FY19, offers greater revenue visibility with book to bill ratio of 3.0x on trailing twelve month basis. 

Dilip Buildcon – BUY - TP – Rs692 (Upside – 54%): Dilip Buildcon Ltd (DBL) stock is down 73% from its 52 week high of Rs1,248 on May2018. Post this fall, the stock is available at extremely attractive valuations of 5x FY21 EPS and in our opinion factoring in an extremely pessimistic scenario. Over the past 3 years, DBL has reported revenue/PAT CAGR of 43% and 61% and it also boasts of extremely superior ROE and ROCE of 28% and 31% for FY18. 

#ZBizHeadlines | एक नज़र शाम 4 बजे की सुर्खियों पर। pic.twitter.com/pftsYIWy4q

— Zee Business (@ZeeBusiness) February 18, 2019

KNR Constructions – HOLD – TP Rs218 (Upside – 5%): KNR has one of the best operating and liquidity parameters in the road construction space. Over the past five years, KNR’s revenue and PAT has grown at CAGR of 41% and 73.5% respectively. However, earnings growth going forward is missing as we expect PAT CAGR of -8.3% for KNR over FY18-21 on the back of high base of FY18 in terms of margins and increasing tax incidence going forward. 

PNC Infratech – BUY – TP Rs183 (Upside – 34%): Like PNC infratech (PNC) on various parameters including higher revenue growth, good balance sheet, large order book and healthy credit rating. The company has delivered stellar growth over the last 3 quarters and is expected to continue with the same rate in the medium term given its order book. 

Sadbhav Engineering – BUY – TP Rs220 (Upside – 35%): Sadbhav Engineering (SADE)  is attractively valued after adjusting for the SIPL stake. What works for SADE is the long track record of the promoters in the construction industry, capability in timely execution of large sized road projects and healthy and diversified order book. So despite weak balance sheet and slower growth, we expect the stock todo well.

Hence, lets build your own road for becoming rich, with these construction stocks! 
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
SensexNiftycrorepaticonstruction stocks
Written By: ZeeBiz WebTeam
Updated: Mon, Feb 18, 2019
04:20 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Closing Bell: Sensex down 150 points, Nifty below 15800 – IT, FMCG, Bank stocks drag most Closing Bell: Sensex down 150 points, Nifty below 15800 – IT, FMCG, Bank stocks drag most
Closing Bell: Markets extend gain for 4th session in a row; Sensex up 16 points, Nifty50 at 15850 – Auto and Metals surge most Closing Bell: Markets extend gain for 4th session in a row; Sensex up 16 points, Nifty50 at 15850 – Auto and Metals surge most
Closing Bell: Markets extend gain for 3rd day in row; Sensex up over 400 points, Nifty above 15800 – IT and Metals gain most Closing Bell: Markets extend gain for 3rd day in row; Sensex up over 400 points, Nifty above 15800 – IT and Metals gain most
Closing Bell: Market sheds 2-day gaining streak as Sensex sees 700 points fall, Nifty50 settles over 200 points lower Closing Bell: Market sheds 2-day gaining streak as Sensex sees 700 points fall, Nifty50 settles over 200 points lower
Closing Bell: Markets extend gain for 2nd day; Sensex up over 900 points, Nifty50 above 15600 – Metal and IT lead the surge Closing Bell: Markets extend gain for 2nd day; Sensex up over 900 points, Nifty50 above 15600 – Metal and IT lead the surge

LATEST NEWS

PACL case: Deadline for investors to submit original investment documents extended till Aug 31

Buy, Sell or Hold: What should investors do with Delta Corp, Dhani Services and Amber Enterprises?

Gold Price Today: Investors with short term view must book profits now; import duty hike, rupee weakness may arrest price correction, temporarily

Food labelling rules for online food delivery platforms like Zomato, Swiggy changed from today; compliance failure to invite action

UPI transactions remain above Rs 10 lakh crore in June for second month in a row: NPCI data

Dalal Street Corner: Market ends with marginal cuts this week; FMCG gains, Consumer Durables decline—What should investors do on Monday?

Stocks to Buy: Sanjiv Bhasin recommends Aarti Industries, Bank of Baroda, Tata Steel; Know the details

June GST collection at Rs 1.44 lakh crore; 2nd highest since implementation

Crisil cuts FY23 GDP growth estimate to 7.3%

Govt warns Ed-tech companies against unfair trade practices

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV