Archive · 11 Jun 2025
Nuvama Cautious on Infrastructure Stocks Amidst Sector Challenges
Imagine a financial analyst named Nuvama looked at a bunch of companies that build roads, bridges, and other important things.
They found out that these companies aren't doing as well as they used to, because the government isn't spending as much money on new projects.
The companies' income went down, and they didn't make as much profit.
Even though they got new orders, things aren't looking great for them right now.
So, Nuvama is a bit worried about the future of these infrastructure companies.
Nuvama Institutional Equities is cautious on the infrastructure sector due to muted capital expenditure growth.
Aggregate top line for 14 infrastructure companies contracted 4% YoY in Q4FY25.
Road EPC companies experienced a 15% YoY decline in top-line performance.
Average return on equity (RoE) fell to 14.4% in FY25 from 16.2% in FY24.
Order inflow increased, raising the book-to-bill ratio to 3x, excluding NBCC.
- Who
- Nuvama Institutional Equities.
- What
- Nuvama is cautious on infra stocks due to concerns about the infrastructure sector.
- When
- Q4FY25 showed a decline in revenue and margins.
- Where
- N/A
- Why
- Muted capital expenditure growth and other financial metrics.
General Infrastructure
NBCC, NCC, and Afcons
Performance
General Infrastructure
Overall decrease in revenue and margins, and lower return ratios.
NBCC, NCC, and Afcons
Increase in order inflow and book-to-bill ratio for the sector.
- Top Line Contraction (Q4FY25)
- 4% YoY
- EBITDA Margin (Average)
- 10.3%
- Average PAT Margin
- 6%
- Book-to-Bill Ratio
- 3x (excluding NBCC)
- Average RoE (FY25)
- 14.4%
- Debtor Days Increase
- From 80 to 96