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Top 5 Infrastructure shares by Market Cap | Top Infra stocks in India.
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Top 5 Infrastructure shares by Market Cap | Top Infra stocks in India.
During the first wave of covid, the economy saw a big slowdown and in this scenario, the government does investment in the infrastructure sector and it would be interesting to see.
" If you want to do better as an investor, the single most powerful thing you can do is increase your time horizon"
How the government will invest in the infrastructure segment?
Leading to this, today I will talk about the top 5 such stocks and what are the things important in these investments.
We will first start with the industry overview. If I talk about this year's budget, the amount allocated for infrastructure saw an increment of 34.5% from last year. And other than this, the government took up initiatives to ramp up the sector in the coming times.
Other than this the government allocated Rs 20,000 Cr to capitalize and develop DFI.
Which is Development Financial Institution that can serve as an enabler in India?
And is expected that DFI will help in creating a portfolio of 5 lakh crore. The budget also allocated more than 1.18 lakh crore to the ministry of the road to building highways and expressways.
A lot of it would be used in new projects and to supply the capital to existing projects of highways and expressways. Rs 50 trillion is needed to have sustainable development in the infrastructure sector by 2022.
So that this sector develops and contributes to the country's development, So from here, you would have understood that how infrastructures important for a country and its GDP due to which a lot of international investors interest in India's infrastructure space.
For example, the private equity investment in India was at $14.5 billion in 2019. The largest deal was done by Abu Dhabi Investment Authority, Public Sector Pension Investment Board and National Investment and Infrastructure Fund of about $1.1 billion in GVK Airport Holding Ltd.
This shows that how important is this sector and how it has been in the focus area of GOI and is expected to have sustainable development through an investment of $1.4 trillion from 2019-2023.
Let us now talk about the 5 stocks from the infra sector on the basis of market cap.
1. Larsen & Toubro Ltd.
At first, let's talk about the sector leader, L&T. L&T is an MNC operating in 30 countries and have handled projects with strategic importance in India.
These are some of the important projects by L&T which includes the Statue of Unity, Hyderbad Metro and many more.
The business verticals of L&T, Design and Precision Engg, Engg Procurement, Construction contracts. Realty and Infra development, Fabrication and Construction, Hi-Tech Manufacturing, Financial Services.
The segregation of the 3,31,100 Cr order book of L&T. The company has the most orders from the Infra sector which stands at 74%. Followed by Defence Engg, Hydrocarbon, Power, Etc which reflect in their order book.
Their market cap is around 1.87 lakh crore and its PE ratio is very decent around 13. They have given a return of 56% in the past year.
Key Ratios
2. GMR Infrastructure Ltd.
Key Ratios
GMR Infrastructure Stock Price Analysis and Quick Research Report. Is GMR Infrastructure an attractive stock to invest in?
- PE ratio: - Price to Earnings Ratio, which indicates for every rupee of earnings how much an investor is willing to pay for a share. A general rule of thumb is that shares trading at a low P/E is undervalued (it depends on other factors too). GMR Infrastructure has a PE ratio of 0 which is low and comparatively undervalued.
- Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. GMR Infrastructure has a ROA of -6.35 % which is a bad sign for future performance. (higher values are always desirable)
- Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and the economy. GMR Infrastructure has a Current Ratio of 1.57.
- Return on equity: - ROE measures the ability of a firm to generate profits from its shareholder's investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. GMR Infrastructure has an ROE of -12.45 % .(higher is better)
- Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. GMR Infrastructure has a D/E ratio of 0.68 which means that the company has a low proportion of debt in its capital.
- Inventory turnover ratio: - Inventory Turnover ratio is an activity ratio and is a tool to evaluate the liquidity of a company's inventory. It measures how many times a company has sold and replaced its inventory during a certain period of time. GMR Infrastructure has an Inventory turnover ratio of 11.22 which shows that the management is inefficient in relation to its Inventory and working capital management.
- Sales growth: - GMR Infrastructure has reported revenue growth of 4.90 % which is poor in relation to its growth and performance.
- Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of GMR Infrastructure for the current financial year is 11.84 %.
- Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for GMR Infrastructure is Rs 0 and the yield is 0 %.
3. KEC International Ltd.
Key Ratios
KEC International Stock Price Analysis and Quick Research Report. Is KEC International an attractive stock to invest in?
Here are the few indispensable tools that should be a part of every investor’s research process.
- PE ratio: - Price to Earnings Ratio, which indicates for every rupee of earnings how much an investor is willing to pay for a share. A general rule of thumb is that shares trading at a low P/E is undervalued (it depends on other factors too). KEC International has a PE ratio of 15.19. Which is high and comparatively overvalued.
- Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. KEC International has a ROA of 4.70 % which is a bad sign for future performance. (higher values are always desirable)
- Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and the economy. KEC International has a current ratio of 1.14.
- Return on equity: - ROE measures the ability of a firm to generate profits from its shareholder's investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. KEC International has an ROE of 20.47 % .(higher is better)
- Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. KEC International has a D/E ratio of 0.77 means that the company has a low proportion of debt in its capital.
- Inventory turnover ratio: - Inventory Turnover ratio is an activity ratio and is a tool to evaluate the liquidity of a company's inventory. It measures how many times a company has sold and replaced its inventory during a certain period of time. KEC International has an Inventory turnover ratio of 19.64 which shows that the management is efficient in relation to its Inventory and working capital management.
- Sales growth: - KEC International has reported revenue growth of 3.49 % which is poor in relation to its growth and performance.
- Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of KEC International for the current financial year is 10.42 %.
- Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for KEC International is Rs 3.40 and the yield is 1.05 %.
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4. Dilip Buildcon Ltd.
Key Ratios
Dilip Buildcon Stock Price Analysis and Quick Research Report. Is Dilip Buildcon an attractive stock to invest in?
Here are the few indispensable tools that should be a part of every investor’s research process.
- PE ratio: - Price to Earnings Ratio, which indicates for every rupee of earnings how much an investor is willing to pay for a share. A general rule of thumb is that shares trading at a LOW P/E is undervalued (it depends on other factors too). Dilip Buildcon has a PE ratio of 25.47 which is high and comparatively overvalued.
- Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Dilip Buildcon has a ROA of 3.85 % which is a bad sign for future performance. (higher values are always desirable)
- Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and the economy. Dilip Buildcon has a Current Ratio of 1.23.
- Return on equity: - ROE measures the ability of a firm to generate profits from its shareholder's investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Dilip Buildcon has an ROE of 12.48 % .(higher is better)
- Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. Dilip Buildcon has a D/E ratio of 0.90 which means that the company has a low proportion of debt in its capital.
- Inventory turnover ratio: - Inventory Turnover ratio is an activity ratio and is a tool to evaluate the liquidity of a company's inventory. It measures how many times a company has sold and replaced its inventory during a certain period of time. Dilip Buildcon has an Inventory turnover ratio of 3.50 which shows that the management is inefficient in relation to its Inventory and working capital management.
- Sales growth: - Dilip Buildcon has reported revenue growth of -1.71 % which is poor in relation to its growth and performance.
- Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of Dilip Buildcon for the current financial year is 17.50 %.
- Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Dilip Buildcon is Rs 1 and the yield is 0.19 %.
5. NBCC (India) Ltd.
Key Ratios
NBCC (India) Stock Price Analysis and Quick Research Report. Is NBCC (India) an attractive stock to invest in?
Here are the few indispensable tools that should be a part of every investor’s research process.
- PE ratio: - Price to Earnings Ratio, which indicates for every rupee of earnings how much an investor is willing to pay for a share. A general rule of thumb is that shares trading at a LOW P/E is undervalued (it depends on other factors too). NBCC (India) has a PE ratio of 52.24 which is high and comparatively overvalued.
- Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. NBCC (India) has a ROA of 1.04 % which is a bad sign for future performance. (higher values are always desirable)
- Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and the economy. NBCC (India) has a current ratio of 1.15.
- Return on equity: - ROE measures the ability of a firm to generate profits from its shareholder's investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. NBCC (India) has an ROE of 5.17 % .(higher is better)
- Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. NBCC (India) has a D/E ratio of 0 which means that the company has a low proportion of debt in its capital.
- Inventory turnover ratio: - Inventory Turnover ratio is an activity ratio and is a tool to evaluate the liquidity of a company's inventory. It measures how many times a company has sold and replaced its inventory during a certain period of time. NBCC (India) has an inventory turnover ratio of 2.89 which shows that the management is inefficient in relation to its Inventory and working capital management.
- Sales growth: - NBCC (India) has reported revenue growth of -28.08 % which is poor in relation to its growth and performance.
- Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of NBCC (India) for the current financial year is 0.29 %.
- Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for NBCC (India) is Rs 0.14 and the yield is 0.27 %.
Well I hope you have enjoyed this article don't forget to share this article with your friends, let them also understand how to invest in Infrastructure shares in the most simplified way.
THANK YOU
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