Top 10 Infrastructure Stocks in India 2025
Posted by : sachet | Fri Jan 24 2025
India’s ambition of becoming an economic superpower encouraged investors to look at the best infrastructure stocks in India. The government has also launched different initiatives to guarantee growth in the infrastructure sector. India keeps investing in projects, including railways, highways, expressways, urban development, and more. This will directly benefit the investors by appreciating their capital.
The government also plans to build a 2 lakh-kilometer national highway network by 2025 and make 23 waterways operational by 2030. Undoubtedly, the future of this promising sector is impeccable.
What are Infrastructure Stocks?
These stocks in India represent shares or equities of the company that builds and maintains the required physical systems. Such stocks are poised to help investors create diversified investment portfolios. Stable demand in this sector leads to its high potential to generate healthy returns in the coming years.
Investing in top infrastructure stocks in India could be a good fit. But in which stocks? Don’t worry. Univest is here to help you. Explore the below table to identify the best stocks to buy at the end of 2024.
Infrastructure Stocks List By Market Capitalisation
:
| Stock Name | LTP (in INR) | Market Capitalisation (in cr.) | 52-Week High (in INR) | 52-Week Low (in INR) |
|---|---|---|---|---|
| Larsen & Turbo Ltd. | 3,583.25 | 4,93,000 | 3,919.90 | 3,031.05 |
| Rail Vikas Nigam Ltd. | 420.90 | 87,770 | 647.00 | s |
| IRB Infrastructure Developers Ltd. | 47.29 | 28,550 | 78.15 | 36.00 |
| K E C International Ltd. | 1,000.25 | 26,610 | 1,075.00 | 566.15 |
| NBCC (India) Ltd. | 89.30 | 24,110 | 139.83 | 42.53 |
| Kalpataru Projects International Ltd. | 1,127.15 | 19,410 | 1,449.00 | 626.45 |
| Afcons Infrastructure Ltd. | 487.15 | 17,730 | 513.50 | 420.25 |
| Ircon International Ltd. | 187.46 | 17,630 | 351.60 | 157.55 |
| G R Infraprojects Ltd. | 1,560.10 | 15,090 | 1,860.00 | 1,024.95 |
| Reliance Infrastructure Ltd. | 252.00 | 9,970 | 351.00 | 144.45 |
*Data is updated as of 22nd November 2024
Factors to Consider When Investing in Infrastructure Stocks in India
Investing in the top infrastructure stocks in India could build wealth in the long run. But it also consists of numerous factors to look over. Investors consider these factors to be significant in making their portfolio diversified. Keep scrolling to explore.
- Order Book
It is the order book of the company that derives revenue. Before investing in infrastructure stocks in India, evaluate the project pipeline of the organisation and its growth perspective. Choose the infrastructure companies that have large current and future projects to complete and generate revenue. Well-funded projects are the key reason behind the development of an infrastructure organisation.
- Regulatory Frameworks
Investors should assess the rules, regulations, and forthcoming amendments to analyse their impact on the stock prices prior to anyone else. Non-compliance in a company might lead to high penalties and defamation. Consider whether the companies comply with legal requirements imposed by the authorised body.
- Aggressive Competition
The infrastructure industry is competitive, and businesses should sustain their competitive edge. Ensure that your selected best infrastructure stocks in India have unique skills and resources to compete aggressively with other players. Organisations with robust market positions are well-poised to perform better in the Indian stock market.
- Government Initiatives
Identify and choose the organisation backed by government policies and initiatives. These include CLAP (Comprehensive Logistics Action Plan), PM Gati Shakti National Master Plan, and TOD (Transit Oriented Development). Choose the stocks gaining advantages of government support as it can increase their project fundings and reduce the risks for the investors.
Top Infrastructure Stocks Based on 1-Year Returns
| Stock Name | 1-Year Returns (%) |
|---|---|
| Rail Vikas Nigam Ltd. | 153.92 |
| NBCC (India) Ltd. | 103.09 |
| Kalpataru Projects International Ltd. | 75.80 |
| K E C International Ltd. | 67.71 |
*Data is updated as of 22nd November 2024
Dividend Yield in the Best Infrastructure Stocks in 2024
| Stock Name | Dividend Yield (%) |
|---|---|
| Ircon International Ltd. | 1.67 |
| IRB Infrastructure Developers Ltd. | 0.87 |
| Larsen & Turbo Ltd. | 0.80 |
| Rail Vikas Nigam Ltd. | 0.50 |
*Data is updated as of 22nd November 2024
Advantages of Investing in Infrastructure Stocks
Infrastructure stocks in India are beneficial for generating wealth in the long term. But are you aware of its other advantages? Let’s help you explore them for a better understanding of why you should invest in this promising industry.
- Diverse Investment Opportunities: The infrastructure industry is all inclusive of several sub-sectors, such as transportation, utilities, and construction. It allows investors to align their portfolios with different aspects of economic growth and stability.
- Government Support: Usually, the government supports infrastructure development through their contracts. It helps in improving the stability of the infrastructure stocks as well as growth potential since investor risk is decreased and project funding is increased.
- Potential for High Returns: When stocks are chosen judiciously, such as in the case of major projects or innovative technologies, these may gain large returns. Investing in leading infrastructure businesses may provide capital appreciation and dividend income to the investors.
- Economic Growth Correlation: As infrastructural demands rise the demand for connected equities also increases significantly. Investment in the best infrastructure stocks in India tend to follow economic trends and potentially benefit from increased government spending and development initiatives during expansions.
- Inflation Hedge: Infrastructure stocks can act as inflation hedges. They often make money from long-term agreements with built-in inflationary adjustments, which help preserve the buying power of dividends and capital gains from higher prices.
Types of Infrastructure Systems in India
There are different types of infrastructure systems on which the growth of the top infrastructure stocks in India relies.
- Critical Infrastructure
Critical infrastructure represents all those systems and assets whose operation and maintenance safeguard a country. Infrastructure can be power, oil, gas, telecommunications, water, healthcare, and agriculture. These systems are critical as their failure may harm the health and security of a nation. Governments accord priority to the resilience and dependability of critical infrastructure to ensure critical services and a healthy economy.
- Hard Infrastructure
Hard infrastructure refers to the physical systems and facilities enabling economic activity and delivery of public services. It erects and maintains transportation networks, including roads, bridges, railroads, airports, and ports; utility systems, such as power grids, water supply, sewage treatment, and communication networks. New highway construction, upgraded electric power plants, and greater internet access can be productive and more connected and foster the company’s growth in the long-term.
- Soft Infrastructure
Soft infrastructure refers to systems and services that run a country’s economy and society. The development of legal and regulatory frameworks, financial institutions, government systems, education and healthcare services, and public administration are less capital-intensive in contrast to physical infrastructure. Harder infrastructure investments, such as finance sector development, upgrading of healthcare and education systems, governance, and improving public service, can increase a country’s competitiveness and quality of life.
Wrap Up
Investing in the infrastructure stocks of India is a fairly good idea. Investors want to know whether these stocks remain resilient or struggle when the economy is facing ups and downs. However, the Indian government is heavily focused on bringing infrastructure betterment into the country like roads, railways, airports, and utilities. The government also encourages partnerships with private companies to bring in funding and better execution from the expertise. To invest in the best infrastructure stocks in India, conduct research or use the available stock advisory platforms.
FAQs on Infrastructure Stocks in India
1. Are infrastructure stocks in India a risky investment?
Ans. Top infrastructure stocks in India have the potential to deliver healthy returns to their investors. However, they also involve numerous risk factors that investors should consider. These include regulatory risks, operational risks, economic slowdowns, volatility, funding risks, and more.
2. What are Infrastructure stocks?
Ans. Infrastructure stocks are the shares of business organisations engaged in developing physical facilities such as communication modes, transportation, highways, expressways, and more. These stocks come with higher growth potential in the long run and also provide investors with a dividend income to manage their daily expenses.
3. What are the top infrastructure stocks to buy?
Ans. Here is the list of the top 10 infrastructure stocks in India with their market capitalisation.
| Stock Name | LTP (in INR) | Market Capitalisation (in cr.) |
|---|---|---|
| Larsen & Turbo Ltd. | 3,583.25 | 4,93,000 |
| Rail Vikas Nigam Ltd. | 420.90 | 87,770 |
| IRB Infrastructure Developers Ltd. | 47.29 | 28,550 |
| K E C International Ltd. | 1,000.25 | 26,610 |
| NBCC (India) Ltd. | 89.30 | 24,110 |
| Kalpataru Projects International Ltd. | 1,127.15 | 19,410 |
| Afcons Infrastructure Ltd. | 487.15 | 17,730 |
| Ircon International Ltd. | 187.46 | 17,630 |
| G R Infraprojects Ltd. | 1,560.10 | 15,090 |
| Reliance Infrastructure Ltd. | 252.00 | 9,970 |
*Data is updated as of 22nd November 2024
4. How to invest in Infrastructure stocks?
Ans. Initiate your investment journey with thorough research on top infrastructure stocks in India. Ensure that fundamentally strong stocks are selected to earn healthy returns in the upcoming years. Use platforms like Univest for the best stock advisory services. Open your demat account and place a transaction to purchase the shares of the infrastructure company. Diversify the investment portfolio for a balanced return and spread risks.
