Multibagger Ashoka Buildcon, IRB, GPT Infra, Kalpataru Projects shares rise up to 354% in a year: Buy or Sell?

Stock Market Today: Multibagger Ashoka Buildcon, IRB Infrastructure Developers,  GPT Infraprojects , Kalpataru Projects International share  prices have rise up to 354% in last one year.  NCC Ltd share price have also gained more than 97% while PNC Infratech share price is up 57% in last one year. Other infrastructure companies are also seeing their share price catching pace.

The strong order inflows during FY24 led by strong rise in government infrastructure spending have driven share prices of Ashoka Buildcon, IRB Infrastructure Developers, GPT Infraprojects , Kalpataru Projects and others. 

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These infrastructure companies as Ashoka Buildcon, IRB Infrastructure Developers, GPT Infraprojects , Kalpataru Projects, PNC Infratech, NCC and others are expected to see strong Q4 and FY24 financial year performance too. 

Ordering for diversified Engineering Procurement and Construction companies remained buoyant in 4Q24. especially as that of Larsen & Toubro and Kalpataru Projects, said analysts at  JM Financial Securities. While diversified companies like L&T, Kalpataru Projects, NCC have surpassed their FY24 order inflow guidance, highway companies have significantly missed the guidance they added, Asset monetisation plans remain under progress for highway developers, which can accrue positives.

Though there may be some miss on order inflow front considering muted order awarding in Q4 ahead of general elections , nevertheless it is anticipated to pick up post elections. on the positive side execution is expected to remain strong during Q4FY24

Analysts at Elara Securities India Pvt Ltd  anticipate a 10% year on year increase in revenue for Infrastructure companies under their coverage universe during March'2024 quarter, which lso includes Larsen & Toubro engineering & construction revenues. Considering that higher orders can be executed, NCC, L&T, PNC Infratech, and HG Infra Engineering might do better than peers, expect analysts at Elara.

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Motilal Oswal Financial Services  also expects construction activity accelerated in 4QFY24, with 4,274km of construction completed in 4QFY24 (versus. 2,370km completed in first nine months of FY24). In FY24, NHAI completed construction of 6,644km of roads, surpassing the target of 6,500km and registering growth of 20% over FY23 and 53% over FY22. as per their data.

The net profit of companies under coverage of Motilal Oswal Financial Services (G R Infraprojects, IRB, KNR Construction) is expected to rise 9% year on year, 18% sequentially. 

Analysts at Elara expect earnings to rise 22% through FY24-26 for companies under their coverage universe.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions