Analysts cautious on road construction stocks despite govt's infra push

High earnings visibility, manageable debt-equity levels factors to consider

Construction of roads across the country has yet again assumed importance, with the latest Reserve Bank of India’s (RBI) annual report for 2017–18 expecting the economy to look up further, aided partly by infrastructure expenditure. 

“During 2018–19, the infrastructure mission is set to accelerate. In the road sector, the key targets are awarding works for around 20,000 km of national highways; construction of 45 km per day vis-à-vis 27 km per day last year; and developing ring roads around 28 major cities under the Bharatmala project,” the RBI report noted.

The Centre’s focus over the past few years, according to