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Construction Stocks with High ROCE English

10 min read

Construction Stocks with High ROCE

The table below shows the construction stocks with high ROCE based on the Highest Market Capitalization.

NameMarket Cap (Cr)Close PriceROCE %
Larsen and Toubro Ltd497631.33679.918.5
NBCC (India) Ltd31563.0174.521.8
Ircon International Ltd26400.3274.617.0
KEC International Ltd22726.6880.124.3
NCC Ltd21045.4337.624.9
Techno Electric & Engineering Company Ltd19444.71688.114.9
G R Infraprojects Ltd16419.21709.819.8
Engineers India Ltd14304.0254.924.2
PNC Infratech Ltd13107.9513.817.8
Praj Industries Ltd13048.0699.927.0

What Are The Construction Stocks with High ROCE?

Construction stocks refer to shares of companies involved in building infrastructure, residential, and commercial properties. High ROCE in construction stocks indicates efficient use of capital, strong project management, and profitability, suggesting good financial health and potential for growth.

Features Of Construction Stocks with High ROCE

The feature of construction stocks with high ROCE reflects their operational efficiency and profitability, making them attractive to investors seeking stable returns. These companies demonstrate effective capital utilization, often translating into robust financial performance and growth potential.

  1. Strong Financial Health: High ROCE indicates efficient capital use, suggesting financial stability and resilience.
  2. Effective Project Management: Superior project execution leads to timely completion and cost savings, boosting profitability.
  3. Market Leadership: A leading market position often results from sustained high ROCE, enhancing competitive advantage.
  4. Investor Confidence: Consistent high ROCE attracts investors, driving stock price and market valuation.
  5. Sustainable Growth: High ROCE supports reinvestment in growth opportunities, ensuring long-term business expansion.

Best Construction Stocks with High ROCE

The table below shows the best construction stocks with high ROCE based on the highest day Volume.

NameClose PriceDaily Volume (Shares)
NBCC (India) Ltd174.523865024.0
Ircon International Ltd274.615492024.0
NCC Ltd337.65356555.0
Engineers India Ltd254.93790712.0
Larsen and Toubro Ltd3679.92617659.0
KEC International Ltd880.1655582.0
Praj Industries Ltd699.9571755.0
PNC Infratech Ltd513.8298598.0
Techno Electric & Engineering Company Ltd1688.1211206.0
G R Infraprojects Ltd1709.833807.0

Top Construction Stocks with High ROCE

The table below shows the top construction stocks with high ROCE based on 1-Year Return. 

NameClose Price1Y Return %
NBCC (India) Ltd174.5310.2
Techno Electric & Engineering Company Ltd1688.1249.1
Ircon International Ltd274.6190.0
NCC Ltd337.6140.1
Praj Industries Ltd699.975.4
Engineers India Ltd254.972.3
PNC Infratech Ltd513.845.9
Larsen and Toubro Ltd3679.936.8
KEC International Ltd880.131.1
G R Infraprojects Ltd1709.831.0

Factors To Consider When Investing In Construction Stocks with High ROCE

The factors to consider when investing in construction stocks with high Return on Capital Employed (ROCE) include understanding market conditions, as they significantly impact the construction industry’s performance.

  1. Company Financial Health: Evaluate balance sheets and cash flows to ensure the company is financially stable.
  2. Industry Trends: Monitor trends and technological advancements in construction to gauge future growth.
  3. Management Expertise: Assess the management team’s experience and track record in the construction sector.
  4. Economic Indicators: Pay attention to economic indicators such as interest rates and GDP growth.
  5. Regulatory Environment: Understand local and national regulations affecting the construction industry.

How To Invest In Construction Stocks with High ROCE?

To invest in construction stocks with high ROCE, start by researching companies with a proven track record of efficient capital use and robust financials. Diversify your portfolio to spread risk, and stay updated on industry trends. Consider using platforms like Alice Blue to facilitate your investments. Open an account with Alice Blue for seamless trading.

Advantages Of Investing In Construction Stocks with High ROCE

The primary advantage of investing in construction stocks with high ROCE is the potential for significant returns due to efficient capital utilization.

  1. High Profitability: Companies with high ROCE typically generate higher profits relative to their capital.
  2. Strong Market Position: Such companies often have a competitive edge and better market positioning.
  3. Sustainable Growth: High ROCE indicates efficient operations and potential for long-term growth.
  4. Lower Debt Levels: Companies with high ROCE usually have lower debt, reducing financial risk.
  5. Investor Confidence: High ROCE can boost investor confidence and attract more investments.

Risks Of Investing In Construction Stocks with High ROCE

The main risk of investing in construction stocks with high ROCE is market volatility, which can lead to significant fluctuations in stock prices.

  1. Economic Downturns: Economic recessions can severely impact construction activity and profitability.
  2. Regulatory Changes: New regulations can increase costs and affect project timelines.
  3. Supply Chain Issues: Disruptions in the supply chain can delay projects and increase expenses.
  4. Labor Shortages: Lack of skilled labor can hamper construction progress and increase costs.
  5. Project Delays: Delays due to weather or other unforeseen events can impact financial performance.

Introduction to Construction Stocks with High ROCE In India

Larsen and Toubro Ltd

The Market Cap of Larsen and Toubro Ltd is Rs. 497631.28 crore. The stock’s monthly return is 0.31%. Its one-year return is 36.77%. The stock is 6.52% away from its 52-week high.

Larsen & Toubro Limited is involved in a range of activities, including engineering, procurement, and construction projects (EPC), hi-tech manufacturing, and services. The company operates in various segments such as Infrastructure Projects, Energy Projects, Hi-Tech Manufacturing, IT & Technology Services, Financial Services, Development Projects, and Others. 

The Infrastructure Projects division focuses on engineering and constructing buildings, factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, as well as minerals and metals.  

NBCC (India) Ltd

The Market Cap of NBCC (India) Ltd is Rs 31,563 crore. The stock’s monthly return is 9.46%. Its one-year return is 310.18%. The stock is 13.63% away from its 52-week high.

NBCC (India) Limited, headquartered in India, provides value-added services across three main segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering Procurement and Construction (EPC). 

Within the PMC segment, the company undertakes civil construction projects, infrastructure projects related to national security, projects for the civil sector, as well as implementation for initiatives like the Pradhan Mantri Gram Sadak Yojna (PMGSY) and developmental activities in the Northeastern Region.  

Ircon International Ltd

The Market Cap of Ircon International Ltd is Rs. 26,400.28 crores. The stock’s monthly return is 3.20%. Its one-year return is 189.98%. The stock is 28.04% away from its 52-week high.

Ircon International Limited, headquartered in India, is a fully integrated engineering and construction firm specializing in infrastructure development across various sectors. 

These sectors include railways, highways, bridges, tunnels, metro systems, electrification projects, high voltage sub-stations, as well as commercial and residential buildings, and railway production units. The company provides engineering procurement and construction (EPC) services for infrastructure projects on a lumpsum turnkey, EPC, and item-rate basis.  

KEC International Ltd

The Market Cap of KEC International Ltd is Rs. 22,726.61 crores. The stock’s monthly return is 2.58%. Its one-year return is 31.06%. The stock is 10.08% away from its 52-week high.

KEC International Limited is a global infrastructure engineering, procurement, and construction company based in India. The company operates in various sectors including power transmission and distribution, railways, civil engineering, urban infrastructure, solar energy, oil and gas pipelines, and cables.

 In the power transmission and distribution sector, KEC International offers comprehensive solutions that cover the design, manufacturing, supply, installation, and commissioning of transmission lines, substations, and underground cabling in both domestic and international markets.  

NCC Ltd

The Market Cap of NCC Ltd is Rs. 21045.42 crores. The stock’s monthly return is 2.73%. Its one-year return is 140.11%. The stock is 3.58% away from its 52-week high.

NCC Limited, an India-based company, is involved in construction and project activities in the infrastructure sector. The company’s focus is primarily on constructing industrial and commercial buildings, residential projects, roads, bridges, water supply and environmental projects, mining, power transmission lines, irrigation systems, and hydrothermal power projects. 

NCC Limited operates in segments such as Construction, Real Estate, and Others with geographic segments including Within India and Outside India. The company’s diverse portfolio includes a range of projects such as housing developments, shopping centers, hospitals, and sewage treatment plants. 

Techno Electric & Engineering Company Ltd

The Market Cap of Techno Electric & Engineering Company Ltd is Rs. 19444.71 crore. The stock’s monthly return is 5.29%. Its one-year return is 249.09%. The stock is 2.01% away from its 52-week high.

Techno Electric & Engineering Company Limited, an India-based power-infrastructure firm, offers engineering, procurement, and construction services to various sectors of the power industry, including generation, transmission, and distribution. 

The company operates through segments such as EPC (Construction), Energy (Power), and Corporate. It provides comprehensive solutions to its clients throughout the electricity value chain via its EPC vertical, asset ownership, and operations and maintenance services. 

G R Infraprojects Ltd

The Market Cap of G R Infraprojects Ltd is Rs. 16,419.24 crores. The stock’s monthly return is -2.74%. Its one-year return is 31.00%. The stock is 8.78% away from its 52-week high.

G R Infraprojects Limited, an India-based company, operates across three main sectors: construction, operation and maintenance, and manufacturing and fabrication. Its core activities involve civil construction, encompassing EPC, BOT, and HAM projects primarily in the road sector.

Engineers India Ltd

The Market Cap of Engineers India Ltd is Rs. 14,303.98 crore. The stock’s monthly return is 0.99%. Its one-year return is 72.25%. The stock is 19.25% away from its 52-week high.

Engineers India Limited is an engineering consultancy and engineering, procurement, and construction (EPC) company. The company operates in various business segments such as Consultancy & Engineering Projects and Turnkey Projects. 

Its business activities cover hydrocarbon, chemicals and fertilizers, mining and metallurgy, power, and infrastructure sectors. In hydrocarbon operations, the company is involved in petroleum refining, onshore and offshore oil and gas, pipelines, strategic storage, as well as port & terminal services.  

PNC Infratech Ltd

The market capitalization of PNC Infratech Ltd is Rs. 13,107.87 crore. The stock’s monthly return is 4.01%. Its one-year return is 45.90%. The stock is 11.88% away from its 52-week high.

PNC Infratech Limited, an infrastructure construction, development, and management company based in India, is primarily involved in various infrastructure projects such as highways, bridges, flyovers, power transmission lines, and airport runways. 

The company operates in segments including Road, Water, and Toll/Annuity, offering comprehensive infrastructure solutions from design and engineering to construction, operations, and maintenance.  

Praj Industries Ltd

The Market Cap of Praj Industries Ltd is Rs. 13,047.97 crore. The stock’s monthly return is 3.81%. Its one-year return is 75.36%. The stock is 8.30% away from its 52-week high.

Praj Industries Limited, headquartered in India, is a biotechnology company with various business segments. These include BioEnergy, Praj HiPurity Systems (PHS), Critical Process Equipment & Skids (CPES), Wastewater Treatment, and Brewery & Beverages. 

The BioEnergy division focuses on technology solutions for different types of biofuels, ranging from conventional ethanol to advanced biofuels like compressed biogas. The company’s subsidiary, PHS, provides high-purity water systems and modular process systems for various industries, including biopharmaceuticals and nutraceuticals.  

Top Construction Stocks with High ROCE – FAQs

1. What Are Top Construction Stocks with High ROCE?

Top Construction Stocks with High ROCE #1:Larsen and Toubro Ltd
Top Construction Stocks with High ROCE #2:NBCC (India) Ltd
Top Construction Stocks with High ROCE #3:Ircon International Ltd
Top Construction Stocks with High ROCE #4:KEC International Ltd
Top Construction Stocks with High ROCE #5:NCC Ltd

The top 5 stocks are based on market capitalization.

2. What are the Best Construction Stocks with High ROCE?

The Best Construction Stocks with High ROCE based on one-year returns are NBCC (India) Ltd, Techno Electric & Engineering Company Ltd, Ircon International Ltd, NCC Ltd, and Praj Industries Ltd.

3. Is It Good To Invest In Construction Stocks with High ROCE In India?

Yes, investing in construction stocks with high ROCE can be beneficial, as it indicates efficient use of capital and the potential for strong returns. However, consider other factors like market conditions, management quality, and economic policies before making a decision.

4. Can I Buy Construction Stocks with High ROCE?

Yes, you can buy construction stocks with high ROCE. Look for companies with consistent financial performance, sound management, and a strong market position. Evaluate the stock’s valuation and growth prospects to ensure it aligns with your investment goals.

5. How To Invest In Construction Stocks with High ROCE?

To invest in construction stocks with high ROCE, open a trading account with a reliable broker. For instance, you can fill out the KYC form on Alice Blue’s website here to get started with a seamless investment process.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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