3 Best Stocks To Buy From Infra Space: Emkay Global Picks 3 Stocks For 43% Return

Emkay Global has recommended 3 best stocks to buy from infrastructure sector. These stocks are HG Infra Engineering Ltd, KEC International Ltd, and Kalpataru Power Transmission Ltd. According to Emkay Global, after a strong inflow during 1HFY23, awards have seen lower growth from Sep-22 to mid-Nov-22. While inflow growth during 1HFY23 on YoY/4-year CAGR basis stood at 86%/8%, it registered at 27%/4% in Sep-Oct '22, respectively. This was lower vs Q2FY23 (33% YoY and 7% on 4-year CAGR basis)."

Growth In Credit To Industries: Credit to industries has steadily increased in FY22, after trending flat for a few years. Credit to industries and infrastructure has grown by ~15% and ~12% YoY, respectively. However, in absolute terms, growth has remained nearly flat since Feb-22 till August-22. Notably, on MoM basis, since Mar-22, the highest increase (Rs450bn) in credit to Industries was seen in Sep-22. Credit to industries, as a percentage of overall non-food credit, still remains extremely low, at ~26%.

Center's Capex Momentum Continues; States Still Not Firing: The Center has maintained its strong capex momentum; during Apr-Sep '22, its capex growth stood at 50% YoY/21% on 4-year CAGR basis. Capex for Railways and Roads has grown +90% and +65% YoY, respectively. Overall, ~46% (39% during 1HFY22) of the budgeted capex has been carried out in the first six months of FY23. The Sep-22 capex at Rs900bn is considerably healthy.

Check key takeaways below:

1. HG Infra Engineering Ltd

The current market price of the stock is Rs 570 apiece with an intraday dip of 0.94%. The company has a market capitalisation of Rs 3718 crore. The stock's 52-week high is Rs 684 and 52-week low is Rs 481 apiece.

Emkay Global has recommended investors to buy the stock with a target price of Rs 820 apiece. Buy HG Infra Engineering Ltd today to receive 43% return. The small cap company was incorporated in 2003. The stock has given maximum return of 117% in last 3-years.

2. KEC International Ltd

The current market price of the stock is Rs 414 apiece with intraday decline of 2.15%. The mid cap company has a market capitalisation of Rs 10,660 crore. The stock's 52-week high is Rs 549 apiece and 52-week low is Rs 345 apiece, respectively.

The stock has given maximum return of 48% in last 3-years. The company was incorporated in 2005 and operates in Power sector.

Emkay global has assigned buy call to the stock. Buy KEC International with a target price of Rs 505 apiece and get return of 22%.

3. Kalpataru Power Transmission Power Ltd

The current market price of the stock is Rs 507 apiece with an intraday gain of 1.87%. It has a market capitalisation of Rs 7557 crore. The 52-week high is Rs 516 apiece and 52-week low is Rs 332 apiece, respectively.

The mid cap company was incorporated in 1981 and operates in Power sector.

Emkay global has assigned buy rating to Kalpataru. Buy Kalpataru Power Transmission Power with a target price of Rs 565 apiece and receive potential return of 11%.

Disclaimer

The stocks have been picked from the brokerage report of Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.