Lockdown 2.0: Some respite for construction firms, but road ahead is long

Companies with stronger balance sheet and early cycle plays like L&T, J Kumar Infra, IRB Infra, Sadbhav Engineering and NCC though may be considered on dips, say analysts

Many construction sector stocks, such as Ashoka Buildcon, Dilip Buildcon, NCC, and NBCC, have gained sharply after the government allowed certain business activities to resume amid the nationwide lockdown. While gains in April for these mid-sized companies are as high as 50 per cent, Larsen & Toubro (L&T) is up 8 per cent this month so far.

The restart of activities is positive and timely, feel experts, but further share price gains may be limited unless hurdles are cleared.

To begin with, the sector has lost precious