Best Infrastructure Stocks In India In February 2025: Praj Industries, IRB Infrastructure, NCC Ltd and More – 5-Year CAGR Basis

Infrastructure development is crucial for India to reach its goal of becoming a $5 trillion economy by 2025. To support this, the government has introduced the National Infrastructure Pipeline (NIP), along with initiatives like ‘Make in India’ and the Production-Linked Incentive (PLI) scheme. Historically, more than 80% of infrastructure spending has gone towards sectors like transportation, electricity, water, and irrigation.

As India’s environment and demographics evolve, the government is now focusing on other areas like housing, water, sanitation, digital services, and transportation to improve infrastructure. These improvements are expected to drive economic growth, enhance quality of life, and increase competitiveness.

This article will explore the top infrastructure stocks in India for February 2025 based on their 5-year Compound Annual Growth Rate (CAGR), market cap and net profit margin.

Best Infrastructure Stocks in February 2025 – 5-Year CAGR Basis

Note: The best infrastructure stocks list is selected from the Nifty 500 universe and sorted based on a 5-year CAGR as of January 30, 2025.

Overview of Top Infrastructure Stocks in India

1. Praj Industries Ltd.

Founded in 1983, Praj Industries Ltd. is a global leader in biotechnology and engineering. The company provides eco-friendly solutions in bioenergy, water treatment, process equipment, breweries, and wastewater management. It focuses on sustainable technologies for energy, the environment, and converting farm waste into fuel. Praj Industries has a strong international presence, with offices in Thailand, the Philippines, and the USA.

In Q2 FY25 (September 2024), Praj Industries reported a revenue of ₹703.51 crore, up from ₹600.66 crore in Q1 FY25 (June 2024). The company’s net profit stood at ₹57.88 crore, compared to ₹91.84 crore in the previous quarter. 

Key metrics: 

• Earning per share (EPS): ₹16.15
• Return on equity (ROE): 22.88%

2. IRB Infrastructure Developers Ltd

IRB Infrastructure Developers Ltd is a leading infrastructure company in India that specialises in road and highway construction. The company also works in other areas of infrastructure, such as road maintenance, airport development, and real estate projects. With years of experience, IRB plays a key role in building and maintaining essential infrastructure across the country.

In Q2FY25 (Sep 2024), IRB Infrastructure reported a revenue of ₹993.75 crore, down from ₹1,254.41 crore in Q1FY25 (Jun 2024). For FY24, total revenue stood at ₹4,826.03 crore. Net profit for Q2FY25 was ₹159.89 crore, an increase from ₹141.84 crore in Q1FY25. 

Key metrics: 

• EPS: ₹1.37
• ROE: 8.46%

3. NCC Limited

NCC Limited, established in 1978, manages EPC contracts and BOT projects under Public-Private Partnerships. The company focuses on constructing roads, buildings, irrigation systems, water and environmental projects, electrical works, mining, metals, and railways.

In Q2 FY24 (Sep 2024), NCC Limited reported a revenue of ₹4,444.98 crore, down from ₹4,713.28 crore in Q1 FY24 (Jun 2024). The company’s net profit stood at ₹160.55 crore in Q2, compared to ₹200.74 crore in the previous quarter. 

Key metrics: 

• EPS: ₹12.13
• ROE: 10.83%

4. Ircon International Limited

Ircon International Limited (IRCON) started in 1976 as a railway construction company. Since 1985, it has expanded into an integrated engineering and construction PSU, handling large and advanced infrastructure projects across sectors like railways and highways.

In Q2 FY24, Ircon International reported a revenue of ₹2,298.86 crore, up from ₹2,180.48 crore in Q1 FY24. The net profit stood at ₹202.22 crore, compared to ₹176.51 crore in the previous quarter. 

Key metrics: 

• EPS: ₹9.03
• ROE: 14.09%

5. NBCC (India) Limited

NBCC (India) Limited is a leading government-owned company under the Ministry of Housing and Urban Affairs. It operates in 3 key areas: Project Management Consultancy, Engineering Procurement & Construction, and Real Estate.

For the quarter ending September 2024, NBCC (India) Limited recorded a revenue of ₹1,864.90 crore and a net profit of ₹123.70 crore. In the previous quarter, June 2024, the company reported a revenue of ₹1,627.34 crore and a net profit of ₹86.63 crore.

Key metrics: 

• EPS: ₹1.50
• ROE: 18.18%

Best Infrastructure Stocks in February 2025 – Market Cap Basis

Note: The best infrastructure stocks list is selected from the Nifty 500 universe and sorted based on market cap as of January 30, 2025.

Best Infrastructure Stocks in February 2025 – Net Profit Margin Basis

Note: The best infrastructure stocks list is selected from the Nifty 500 universe and sorted based on net profit margin as of January 30, 2025.

Key Considerations Before Investing in Infrastructure Stocks

1. Market Demand: As economies grow and urbanise, the demand for infrastructure development increases.
2. Government Policies: Be aware of regulations and government spending on infrastructure, as these affect stock performance.
3. Company Fundamentals: Assess the company’s financial health, profitability, debt levels, and growth potential from ongoing and future projects.
4. Sector Risks: Infrastructure investments can be influenced by political stability and economic cycles.
5. Competitive Position: Evaluate the company’s market position, competitive strengths, and innovation in infrastructure technologies.
6. Long-Term Investment: Infrastructure stocks generally require a long-term investment approach, with the potential for steady dividends.

The Future of India’s Infrastructure: Growth and Opportunities

India’s infrastructure sector is experiencing a major increase in capital expenditure, up 37% this fiscal year. This boost is part of India’s plan to reach a $5 trillion economy by 2027. The government is focusing on key areas like roads, railways, and shipping, aiming to attract private investments and create more rural employment.

To meet the demands of its rapidly growing population, India needs to invest $840 billion in urban infrastructure over the next 15 years. Ensuring the long-term maintenance of key structures like bridges and airports is also crucial for sustainable growth.

Digital growth and opportunities in smaller cities are helping close the gap between major metros and non-metro areas. Commercial real estate and residential sales are growing, and the government’s “Vision 2040” plan aims for 190-200 operational airports by 2040. These factors point to a bright future for India’s infrastructure sector, with rapid development ahead.

Conclusion

Infrastructure stocks are key to India’s growth and present strong long-term investment opportunities. However, it’s important to carefully consider a company’s financial health, the time horizon of your investment, and the sector’s growth prospects before making investment decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.