Best Infrastructure Stocks in India 2024

  • 18 Mar 2024
  • Read 15 mins read

Infrastructure stocks refer to the shares of companies that are involved in the development and maintenance of essential public works and facilities. This includes power plants, roads, bridges, and telecommunications networks. These stocks are important as they play a crucial role in economic growth and facilitating the smooth functioning of various industries. One can invest in these stocks and gain positive results. However, investing in the right infrastructure stocks requires a careful understanding of factors such as a company's financial health and the growth goals of the company. 

This blog will cover some of the best infrastructure stocks in India that are listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Additionally, this article will focus on covering all the essential aspects related to infrastructure stocks in India to help you make informed investment decisions when investing.

Infrastructure Stocks List on NSE and BSE

India believes that improving infrastructure is crucial for progress. This leads to an increase in the demand for investing in the best infrastructure stocks in India. The following is the breakdown of some of the best infra stocks in India that are listed on NSE and BSE:

Company Name

Market Cap (in Billion INR)

Share Price (in INR)

Adani Ports



Reliance Infrastructure Ltd






Dilip Buildcon Limited



GMR Airport Infrastructure



Rites Limited



Techno Electric Engineering Co



G R Infraprojects



Disclaimer - All the stock prices, market capitalization, net profits, and P/E ratios mentioned above are accurate as of 13 March 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.


Overview of Best Infrastructure Stocks

The following is the overview of the above-mentioned infra stocks in India.

  1. Adani Ports

    Adani Ports and Special Economic Zone (APSEZ) is the largest commercial port in India. It handles around one-fourth of all cargo movement in the country. Adani Ports has a strong presence at 13 domestic ports in India and provides connections to inland areas. The port facilities are modern and can accommodate large ships coming to India's shores. The company has grown and has the potential for further expansion. This makes it one of the best infrastructure stocks in India.
  2. Reliance Infrastructure Ltd

    Reliance Infrastructure Ltd is one of the leading infrastructure companies in India. It develops infrastructure projects through Special Purpose Vehicles (SPVs) in various sectors like Power, Transport, Metro Rail, and Defence. The company also has a significant presence in the utility sector, covering the entire power value chain, including generation, transmission, distribution, and power trading.
  3. HFCL Ltd

    Himachal Futuristic Communications Limited (HFCL Limited) is a multidimensional telecommunications infrastructure provider. These include building networks, system integration, manufacturing state-of-the-art communications equipment, optical fiber, and optic fiber cable (OFC) manufacturing and distribution.
  4. Dilip Buildcon Limited

    Dilip Buildcon Limited is a large infrastructure company in India. It started in the residential real estate sector but later diversified into building petrol pumps and government projects. The company also worked in road construction. Dilip Buildcon has a strong presence in Madhya Pradesh. The state government is a long-standing client. Its customers include the National Highways Authority of India, the Madhya Pradesh Road Development Corporation Ltd., and the Ministry of Road Transport and Highways.
  5. Rites Limited

    Rites Limited is a multidisciplinary consultancy firm. It is owned by the Indian government and established in 1974. It offers services in transport, infrastructure, and related technologies.  Its geographical reach covers various sectors like highways, railways, metros, urban engineering, sustainability, ports, airports, ropeways, inland waterways, institutional buildings and structures, and renewable energy. It is the sole export arm of the Indian Railways that provides rolling stock.
  6. GMR Airport Infrastructure Stocks

    GMR infrastructure mainly focuses on developing, maintaining, and operating airports, power generation, coal mining, exploration efforts, highway development, maintenance, and operation of key economic zones. The company is also involved in construction activities, including engineering, procurement, and construction (EPC) contracting.
  7. Techno Electric Engineering Company

    Techno Electric and Engineering Company Limited (TEECL) is a company that does everything in the electrical industry. They own properties, take care of them, and build electrical stuff like power plants.
  8. G R Infraproject Stocks

    G R Infraprojects Ltd. is an engineering, procurement, and construction (EPC) company with a focus on roads. Established in 1995, the organization has a successful track record and specializes in planning road and highway projects across 15 Indian states. In the roads sector, GR Infraprojects is primarily engaged in civil construction projects.

What does Infrastructure mean?

Infrastructure refers to the basic systems and facilities that are essential for a country, region, or community to function properly. These systems enable various activities and services. Infrastructure systems are usually large-scale and demand significant investment to build and maintain. Governments, private companies, or a combination of both may fund and manage these projects because they are crucial for a country's economic development and the overall quality of life for its citizens.

Some examples of infrastructure include the following: 

  • Transportation systems like roads, bridges, railways, airports, and ports. These help in the movement of people and goods.
  • Communication networks such as telephone lines, internet cables, and broadcasting systems. These help people to communicate and share information.
  • Utilities like water supply, sewage treatment plants, and electricity grids. These provide basic amenities for households and businesses.
  • Public services like schools, hospitals, and public spaces. These support education, healthcare, and community well-being.

Types of Infrastructure Systems in India

India has developed a good network of infrastructure systems to support its growing economy and meet the needs of its increasing population. These systems are categorised into the following:

  1. Energy Infrastructure

    This includes power generation plants such as thermal, hydro, nuclear, and renewable sources. This further helps in producing electricity. It is an extensive network of transmission lines and distribution systems that supply power across the nation.
  2. Rural Infrastructure

    This category focuses on Rural well-being and development. The rural road networks connect remote villages. This leads to improving accessibility and mobility. Additionally, it focuses on the agricultural sector.  This includes irrigation systems, storage facilities, and market yards, which support the farming sector.
  3. Urban Infrastructure

    This category aims to improve urban living through technology-driven solutions. Additionally, it includes water supply systems and sanitation facilities that ensure access to clean water and proper waste management.
  4. Industrial Infrastructure

    It includes industrial parks and special economic zones to attract investments and support manufacturing operations. Ports along the coastline facilitate international trade and maritime activities.
  5. Transportation Infrastructure

    This includes roads and highways. This connects cities, towns, and villages which ultimately enables the movement of goods and people. Additionally, the commendable railway network efficiently transports passengers across the country. Airports allow domestic and international air travel.

How to Select the Best Infrastructure Stocks to Invest in 2024?

There are several factors you need to consider when you are looking to invest in the best infrastructure stocks in India. This includes:

  1. Earnings and Capital

  2. Companies need good earnings and enough capital to grow their business. You should look at the company's position in the market and its potential for growth in the future. Additionally, you need to understand the company's contracts and regulations. Examine the structure of the company's contracts well. This will help you calculate the company's revenue.
  3. Debt-to-Equity Ratio for Infrastructure Shares

    You need to check if the company is making enough money to cover its costs. Infrastructure companies often have high costs, so their balance sheets will show more debt.

    You can calculate the coverage ratio using this formula:

    Operating Cash Flow ÷ Borrowing Cost Paid
  4. Order Execution by Infrastructure Companies

    The size of a company's order book is important because larger projects can bring in more value. However, it's also crucial that the company can complete projects quickly and efficiently.
  5. Management in Infrastructure Stocks

    You need to pay attention to the company's budget and strategic plans. It is suggested to check if there are any problems with the company's management and governance. You may also look at the overall professionalism of the management team.
  6. Economic Stability in Industry Groups

    Go through the company's financial statements, such as cash flow, balance sheets, and profit and loss statements. Additionally, you should look at and understand well several ratios like debt-to-equity ratio, book-to-sales ratio, and asset-management ratio. This will help you to get a clearer understanding of the company's performance.

Future of Infrastructure Sector in India

The Indian government is putting a lot of effort into improving the country's infrastructure. According to Invest India, the government has set aside a big part of the budget, which is 3.3% of the GDP, for infrastructure development in the year 2024. The main focus is on transportation and logistics, like building more roads, highways, railways, public transport in cities, airports, and waterways. The government has made some ambitious plans, such as building a 2 lakh-km national highway network by 2025, increasing the number of airports to 220, and making 23 waterways operational by 2030.

The government knows that it cannot do this alone, so it is encouraging partnerships with private companies. These public-private partnerships (PPPs) are very important because they bring in much-needed money, new ideas, and efficient ways of working. PPPs help to fill the gap in funding, create competition, and promote the use of new technologies and best practices in carrying out projects. The future of the infrastructure sector in India looks bright, with the government's strong commitment, ambitious goals, and support for private partnerships. 

Investing in infrastructure stocks in India can be a good opportunity. The Indian government is heavily focused on improving the country's infrastructure like roads, railways, airports, and utilities. However, one should be aware of the risks this sector carries and invest accordingly. They have set aside a large part of the budget for infrastructure development. The government is also encouraging partnerships with private companies to bring in funding, expertise, and better project execution. Some of the top infrastructure companies to consider investing in include Adani Ports, Reliance Infrastructure, HFCL, Dilip Buildcon, Ircon, GMR, Rites, Techno Electric, IRB Infrastructure, and GR Infraprojects. To invest in the best infrastructure stocks in India, one is suggested to use a safe and efficient online stock trading app.

FAQs on Infrastructure Stocks

Some of the best infrastructure stocks in India are Adani Ports, Reliance Infrastructure, Dilip Buildcon, GMR, Rites Limited, and IRB Infrastructure Developers.

The infrastructure stocks have the potential to provide good returns as infrastructure development is crucial for economic growth and the government is heavily investing in this sector.

Infrastructure stocks might be relatively riskier due to high capital requirements and dependence on government policies and projects.

You can invest through stock brokers or online trading platforms after conducting thorough research on the companies.

Infrastructure stocks can be defensive as governments increase spending on infrastructure projects to boost economic growth during downturns.