Analysts bullish on road, highway developers on infra push, cheap valuation

Analysts remain positive on the road/construction sector given healthy order books providing good revenue visibility, controlled working capital, value unlocking

The cheap valuations of road and highway developers and the government’s focus on infrastructure development has caught investors’ fancy. As a result, some of these stocks have surged as much as 40 per cent in the past six months.

Shares of HG Infra Engineering, for instance, have rallied 45.6 per cent during the period, while those of IRB Infrastructure Developers, KNR Constructions, and L&T gained between 25 per cent and 40.5 per cent, ACE Equity data shows.

In comparison, the benchmark S&P BSE Sensex has zoomed 14 per cent and the broader S&P BSE500 index has rallied 13 per cent during the