Now Reading: Axis Securities picks Kalpataru, RITES, GR Infra as top infrastructure buys
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Axis Securities picks Kalpataru, RITES, GR Infra as top infrastructure buys
Axis Securities picks Kalpataru, RITES, GR Infra as top infrastructure buys
Axis Securities has named Kalpataru Projects International, RITES, and GR Infraprojects as its top conviction infrastructure picks after mixed Q1FY27 results for the sector. The brokerage retained a 'Buy' on Kalpataru with…
Axis Securities has named Kalpataru Projects International, RITES, and GR Infraprojects as its top conviction infrastructure picks after mixed Q1FY27 results for the sector. The brokerage retained a 'Buy' on Kalpataru with a target of Rs 1,500, citing its Rs 66,607 crore order book and record inflows in buildings and factories. RITES was maintained at 'Buy' with a Rs 250 target after it secured 128 new orders worth Rs 674 crore, taking its order book to a record Rs 9,450 crore.
GR Infraprojects, with a Rs 1,020 target, has an order book of Rs 25,319 crore spanning highways, railways and telecom, and management has guided for up to 20% revenue growth in FY27. The brokerage expects these companies to benefit from strong revenue visibility, diversified pipelines, and healthy balance sheets. However, Axis also noted that Q1 revenue for road infrastructure companies fell 3% year-on-year, below its expectations, though net profit jumped 47%.
Indian Opinion Analysis
Axis Securities' strong endorsements come when road and infrastructure companies face pressure on revenue and sales volumes despite margin gains. The real test for these picks will be execution: Kalpataru's 66,607 crore order book, RITES' record 9,450 crore backlog, and GR Infraprojects' 25,319 crore pipeline must convert into cash flows rather than just stock targets. The brokerage itself flagged that adjusted margins remained below expectations, with exceptional items propping up profit growth. The market will watch Q2FY27 results closely to see if the revenue trajectory improves and if the Bangladesh coach order for RITES materialises as forecast.
Source: livemint.com
This story was synthesised by AI from the source linked above.
