Nirmal Bang: Construction Sector Update - Earnings Drivers Gaining Momentum; Valuation Still Attractive
A crane operates at a construction site. (Photographer Brendon O’Hagan/Bloomberg)

Nirmal Bang: Construction Sector Update - Earnings Drivers Gaining Momentum; Valuation Still Attractive

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 are set to outperform as earnings growth is set to pick up with increased execution coupled with reduction in working capital.

Strong orderbook, controlled working capital, ability to recycle capital through sale of assets and positive regulatory changes in the sector all bode well for these companies.

In this note, we look at various regulatory changes initiated by the National Highways Authority of India and its impact on the construction companies.

We have a positive view on the sector with ‘Buy’ rating on all the stocks under our coverage.

Click on the attachment to read the full report:

Nirmal Bang Construction Sector Update -9 December 2020.pdf

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