Road construction relaxation not enough to buy related stocks, say analysts

The relaxation will not help many of the listed players and it will be a while before activity begins for them. There coud be labour-related issues.

As Prime Minister Narendra Modi announced the extension of the nationwide lockdown till May 3 to stem the spread of coronavirus (Covid-19) pandemic, the halt in construction of national highways had entered an uncertain territory. Most analysts now find it hard to chalk-out a timeline for normalisation of operations, thus making them pessimistic on the near-term outlook for road developers. While the government has allowed construction of roads, availability of labour could still be an issue, analysts say.
 

“The relaxation will not help many of the listed players and it will be a while before activity begins for them. There