Best Road Construction Stocks in India

India is on the road to becoming a major economic superpower in the world and its economy is on the threshold of achieving the $4 trillion mark. In this journey of India, the infrastructure sector will play a key role in accomplishing the target. 

 

Since the present government has come into power, the road construction stocks in India have got a major boost. The government has specifically emphasized the infrastructure sector to pave the way for India’s growth story. 

 

Thousands of kilometres of roads have been constructed under the Bharatmala Pariyojana and the transport and logistical sector has seen a major revamp under the Pradhan Mantri Gate Shakti Yojana.  

 

Overview of the Road Construction Sector of India

Under the guidance of honourable Minister Nitin Gadkari, the National Highway construction speed of India has increased by a CAGR of 5.3% between FY 2014-23. Despite the economic slowdown caused by the pandemic, the Ministry of Road Transport and Highways constructed 10,457 km of highway in 2022 which was further extended by 10,331 km in 2023. 

 

The National Highways Authority of India (NHAI), spent a whopping INR 2,07,000 crore on the construction of highways in 2023-24 and the government has further plans to bolster this speed as they have again allocated a record-breaking INR 2,07,000 crore to the Ministry of Road Transport and Highways (NHAI) in the interim budget of 2024-25. 

 

In the last ten years, India’s road network has grown by 59% which is the second-largest in the world. India’s highway network which was at 97,830 kms in 2014 has now been expanded to 146,145 kms by the end of 2023. The government further has 202 national highway projects in the pipeline for the future worth INR 79,789 crore which are at the implementation stage which is an indication that there is going to be a lot of growth in the construction sector in the coming years. 

 

Learn stock market trading from complete stock market courses at  Rs. 2,999/- only

 

Top Road construction stocks to watch out for in 2024

Here is the list of the top stocks in the road construction sector where you can invest to gain extraordinary returns in the long term: But before investing in these stock you need to know the important ratio in stock market.

Company Name	Last Price	52 wk High	52 wk Low	Market Cap (Rs. cr)
IRB Infrastructure Developers	62.65	28.75	78.75	37828
G R Infraprojects Limited	1616	1860	1024	15630
PNC Infratech Limited	450	574	310	11544
Dilip Buildcon Limited	560	588	286	8198
Ashoka Buildcon Limited	251	271	100	7066

 

1) IRB Infrastructure Developers

IRB Infrastructure Developers Limited is a top Engineering, Procurement, and Construction (EPC) company in India that specializes in the construction of roads and highways. It further has expanded its business in the construction sphere as it also deals in the maintenance of roads, airport construction, and real estate.

 
They are the biggest BOT (Build Operate Transfer) operators in the country with 36 projects in their portfolio. The company also enjoys a 37% share in the TOT market along with a 20% share in the Golden Quadrilateral Highway Network. It also boasts of the capacity to construct 500-600 km or roads at a given point in time.

 

IRB Infrastructure is also one of the best infrastructure stocks in India

 

 

2) G R Infraprojects Limited

Being incorporated in the year 1995, G R Infrprojects Limited is another prominent name in the Indian raid construction industry. It is an integrated road Engineering, Procurement, and Construction company (EPC) that primarily engages in the designing and construction of Indian roads and highways and has constructed over 100 road projects in 16 Indian states to date. 

 

The company is primarily into civil construction that consists of EPC, BOT, and HAM projects in the road sector and EPC projects in railway, metro, airport runways, and Optical Fibre Cable (OFC) which also accounts for 90% of its total revenue. It has now diversified its business and has entered the Power Transmission industry. GRIL operates a diverse portfolio of 10 infrastructure projects. 

 

These include one National Highways Authority of India (NHAI) annuity project, one state-funded Hybrid Annuity Model (HAM) project, and eight additional NHAI HAM projects.

 

 

3) PNC Infratech Limited

PNC Infratech Limited came into being in 1999 as PNC Construction Company Private Limited and was finally converted into a limited company in 2001. The company was renamed PNC Infratech Limited and since then it has become a leading player in the highway construction sector. 

 

It engages in building and managing various projects, including highways, bridges, flyovers, power transmission lines, airport runways, and industrial areas. PNC has completed 88 infrastructure projects in 13 states of India out of which 64 are EPC road projects. Some of the major clients of PNC Infrastructure Limited have been NHAI, HSRDC, AAI, MSRDC, Rites, UPPCL, etc.

 

 

4) Dilip Buildcon Limited

Dilip Buildcon Limited was formed in 2006 and primarily deals in developing infrastructure on an Engineering Procurement and Construction basis (EPC). It also gets infrastructure contracts from the government and other parties. The company’s business segment is divided into:

 

1. EPC Projects & Road Infrastructure Maintenance: This segment of the company is in the construction business which undertakes various important projects such as road, irrigation, airport, metro rail viaduct, and mining excavation projects on an EPC basis. This segment contributes 93% of the company’s total revenue. 

2. Annuity Projects and other businesses: In this segment, the company undertakes projects on a hybrid annuity basis, toll basis, annuity basis, and annuity plus toll basis. 

 

Some of the prominent projects undertaken by the business are the Bhopal Metro; Indore Metro; Tunnel on Delhi - Vadodara Greenfield Expressway; and Sahibganj Bypass including the Ganga Bridge and Manihari Bypass.

 

 

5) Ashoka Buildcon Limited

Ashoka Buildcon Limited is another name in the Indian construction industry and mainly deals in the construction business and undertakes infrastructure projects on EPC and BOT basis. 

The company boasts of featuring in the Fortune 500 companies of India and is one of the top highway developers of the country. The business segment of the company consists of Highways & Bridges, Power (EPC), Railway Works, Buildings (EPC), City Gas Distribution, and Smart Infrastructure. 

It has also delivered the execution of 41 PPP projects and has expanded its business in more than 20 Indian states. They built one of India's longest six-lane flyovers in Kerala, spanning 12.752 kilometers. They also constructed India's first eight-lane cable-stayed bridge in an impressive 33 months. Additionally, they played a key role in building the Bundelkhand Expressway.

 

 

6) AVP Infracon Limited

AVP Infracon was incorporated in 2009 and since then has become an important player in the construction of road projects on BOQ and EPC basis.  They have been involved in the construction of many important projects consisting of expressways, national highways, flyovers, bridges, irrigation projects, urban development, hospitals, warehouses, hotels, and residential projects. They provide services that encompass the entire project lifecycle, including design, procurement, construction, and post-construction support.