SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Construction stocks jump as Ind-Ra maintains stable outlook for construction sector for rest of FY20

25 Oct 2019 Evaluate

India Ratings and Research (Ind-Ra) has maintained a stable outlook for the construction sector in India for the rest of FY20 mainly on account of the current order book position.

Larsen & Toubro is currently trading at Rs. 1435.50, up by 3.60 points or 0.25% from its previous closing of Rs. 1431.90 on the BSE. The scrip opened at Rs. 1436.00 and has touched a high and low of Rs. 1442.00 and Rs. 1423.20 respectively. So far 24217 shares were traded on the counter.

NCC is currently trading at Rs. 54.05, up by 0.50 points or 0.93% from its previous closing of Rs. 53.55 on the BSE. The scrip opened at Rs. 54.00 and has touched a high and low of Rs. 55.05 and Rs. 53.40 respectively. So far 2340123 shares were traded on the counter.

Jindal Saw is currently trading at Rs. 86.10, up by 0.55 points or 0.64% from its previous closing of Rs. 85.55 on the BSE. The scrip opened at Rs. 85.85 and has touched a high and low of Rs. 86.75 and Rs. 85.70 respectively. So far 12287 shares were traded on the counter.

The agency has maintained stable outlook despite a slowdown in awarding projects in the transport and irrigation sectors. It also said that most construction firms are likely to experience healthy revenue growth and stable credit metrics over H2 FY20, supported by the strength of their existing order books.

Rating agency has noted that the likely slowdown in the new order inflows in the roads, bridges and highways and the irrigation segments would be compensated by strong order inflows from the urban infrastructure including housing, metro, water supply, sewage treatment and railways segments. It also opined that construction companies focused on road EPC sub-segment are likely to experience minimal developments with respect to their ratings during H2 FY20, as they would continue to execute their order book in a timely manner, supported by their strong execution capabilities and timely realisation of receivables, resulting from the presence of strong counter parties in their order book.

Ind-Ra further said the overall improvement in the financial profile of construction companies are more likely to be determined by their ability to manage their existing working capital resources in a prudent manner, given the working capital- intensive nature of the sector and the increasing risk- averse approach adopted by lenders towards the construction sector. However, it noted that the revenue visibility of these companies might be affected by the slow pace of awarding for road projects, which remains a key rating monitorable.

Larsen & Toubro Share Price

4094.95 -22.40 (-0.54%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
Larsen & Toubro 4094.95
Rail Vikas Nigam 303.10
NCC 161.30
KEC International 580.10
Kalpataru Projects 1232.90
View more..

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×