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Construction Sector Check - Superior Revenue Visibility For Next Two Years; Valuation Attractive: Nirmal Bang

Construction Sector Check - Superior Revenue Visibility For Next Two Years; Valuation Attractive: Nirmal Bang

A construction crane is illuminated by sunlight as it stands on a building development. (Photographer: Adam Glamzman/Bloomberg)
A construction crane is illuminated by sunlight as it stands on a building development. (Photographer: Adam Glamzman/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

We believe that the construction sector stocks will continue to outperform as earnings growth momentum is likely to sustain amid improved execution coupled with strong order inflow expectations.

In this note, we have introduced FY24 estimates for our coverage companies and have rolled our valuation base forward to September 2023 from March 2023.

We have a positive view on the sector due to -

  1. thrust by the government on infra spending through the National Infrastructure Pipeline,

  2. favorable regulatory changes introduced by Ministry of Road Transport and Highways,

  3. strong orderbooks and balance sheet positions of various engineering procurement and construction companies and

  4. increased asset monetisation opportunities for private players augur well for the sector.

Click on the attachment to read the full report:

Nirmal Bang Construction Sector Update - 20 September 2021.pdf

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