ITNL scare shows road sector risks; IRB Infra, Ashoka Buildcon stocks fall

Execution hiccups, funding costs and delays in financial closure are hurting the sector

Among the sectors most affected by the fallout of downgrades for IL&FS Transportation Networks (ITNL) is road infrastructure. Listed players in this space have lost up to half their value from the highs seen a few months ago. While IRB Infrastructure, Ashoka Buildcon, Sadbhav Engineering, KNR Constructions hit their 52-week lows on Friday, there was little demand for the stocks of Dilip Buildcon and PNC Infratech.

These players were in the spotlight a few months ago after the government announced the fast-tracking of projects in the road segment. Strong order flows from the National Highway Authority of India