Pace slackens for road construction scrips

Unless companies press the pedal on implementation, further stock price gains might be limited

The bull run for road construction stocks began in 2013 in anticipation of the Bharatiya Janata Party (BJP) being voted to power at the central government. It gathered momentum when Narendra Modi took office as prime minister. Between 2013 and 2014, most stocks of road construction entities had doubled or even trebled.

The party didn't last too long, starting to fade away in early 2015. Over a year, NCC has risen by onely three to four per cent, while returns have slipped into a negative zone for Sadbhav Engineering, Ashoka Buildcon, J Kumar Infrastructure and IRB Infrastructure in this period. The