Equity Analysis /
India

IN : Constrn & Material - Overall - Well-placed for strong FY24F performance

    Rajarshi Maitra
    Dipen Vakil
    CGS-CIMB
    1 April 2022
    Published by

    Infrastructure sector execution - speed bump in FY25F (general elections in India in 2024) and persistent high crude oil prices are key areas of concern. With 2.9x order book/sales in Dec 2021, companies have to fund 22% of their order book, like in Mar 2019. Execution can re-rate DBL, PNC and NCC. Maintain Add on DBL and Reduce on KNR; upgrade to Add from Hold in case of NCC, IRB Infra and IRB InvIT; upgrade to Add from Reduce in case of PNC.