Will Railway Budget 2025 Be Presented Separately?

On February 01, 2025, Union Finance Minister Nirmala Sitharaman will present the Union Budget, which outlines the country’s financial strategy. However, the structure of the Union Budget wasn’t always as we know it today.

The Railway Budget Before 2017 

For many years, the Railway Budget was separate from the Union Budget. This system started in 1924 after recommendations from the Acworth Committee during the colonial era. For decades, the Railway Budget was presented a few days before the Union Budget.

Why Was the Railway Budget Merged? 

In 2016, a committee led by Bibek Debroy from NITI Aayog, along with a separate report, suggested merging the Railway Budget with the Union Budget. This recommendation was based on the idea that a unified budget would be more efficient and better aligned with India’s modern financial goals.

What Changed After the Merger? 

When Finance Minister Arun Jaitley presented the combined Union Budget in 2017, several changes were made to how the Railway Budget functions:

  1. Railways as a Commercial Undertaking: The Ministry of Railways continues to operate as a departmentally-run commercial entity.
  2. Budgetary Changes: A separate Statement of Budget Estimates and Demand for Grant is now created for Railways, but all legislative work, including the Appropriation Bill, is handled by the Ministry of Finance.
  3. Dividend Exemption: Railways no longer need to pay dividends to the government, and its capital-at-charge is cleared.
  4. Budgetary Support from Finance Ministry: The Ministry of Finance allocates part of its budget to the Ministry of Railways for capital expenditure.
  5. Extra-Budgetary Resources: Railways can still raise money from external sources to fund its capital projects.
  6. Unified Financial Picture: A single budget provides a more comprehensive view of the government’s financial position.
  7. Multimodal Transport Planning: The merger enables better coordination between railways, highways, and waterways for smoother transportation planning.
  8. Better Resource Allocation: The Finance Ministry has more flexibility in allocating resources effectively during mid-year reviews.

By merging the Railway Budget with the Union Budget, the government can present a clearer and more holistic financial picture while ensuring better planning for the country’s infrastructure and transportation needs.

 

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.

Big Financial Changes Coming in February 2025: Budget, RBI, and More!

February is set to bring several important updates in finance, from the Union Budget to changes in banking services and UPI rules. Here’s a summary of what to expect and how these changes may impact you:

Union Budget 2025: What To Expect For Your Finances Ahead Of Nirmala Sitharaman Speech

Finance Minister Nirmala Sitharaman will present the Union Budget on February 1, 2025. Several announcements are expected that could impact your taxes and savings:

  • Higher Basic Exemption Limit: There are talks of raising the basic exemption limit from ₹3 lakh to ₹10 lakh, which would reduce the tax burden for individuals.
  • New Tax Slab: A proposal for a new 25% tax slab for incomes between ₹15 lakh and ₹20 lakh is on the cards, potentially easing the tax load on middle-income earners.
  • Increase in Standard Deduction: Tax consultants suggest increasing the standard deduction to ₹1 lakh, up from ₹75,000, which would help people deal with rising living costs.
  • Restoring Indexation for Debt Funds: Investors hope the Budget will restore the tax benefits on debt funds that were removed last year.
  • Health Insurance Deductions: Taxpayers are hoping for higher deductions under Section 80D for health insurance premiums and medical expenses, considering the rising healthcare costs.

Will the RBI Cut Repo Rate?

The Reserve Bank of India (RBI) has kept the repo rate steady at 6.5% for the past 11 policy meetings. Economists believe that a rate cut is likely in February, thanks to:

  • Lower Inflation: Inflation dropped to 5.22% in December, down from 5.48% in November, driven by reduced food prices.
  • Economic Growth: Slower-than-expected growth has added to the chances of a repo rate cut.
  • Liquidity Measures: The RBI injected liquidity into the system in January, which has further fueled hopes of a rate cut.

Kotak Mahindra Bank Updates

Starting February 1, Kotak Mahindra Bank will make changes to its savings accounts, particularly for Kotak811 account holders:

  • ATM Withdrawal Limit: The free daily ATM withdrawal limit will be increased from ₹10,000 to ₹25,000.
  • Higher Fees: The bank will hike its charges for services like RTGS, NEFT, and chequebooks. For example, RTGS fees for transactions between ₹2 lakh and ₹5 lakh will increase from ₹20 to ₹40.
  • New Charges for NEFT: The bank will now charge ₹4 for NEFT transactions up to ₹2 lakh (previously ₹2 for transactions up to ₹10,000).

Changes in UPI Transaction Rules

The National Payments Corporation of India (NPCI) will enforce new rules from February 1, 2025. UPI transactions with special characters in transaction IDs will be rejected. All UPI IDs must be alphanumeric to comply with the new regulations. Make sure to update your payment apps to avoid transaction issues.

Start Your Tax Planning Early

With the financial year ending in 2 months, it’s time to start your tax planning. Avoid the rush by focusing on investments like the Public Provident Fund (PPF), National Pension Scheme (NPS), and Equity Linked Savings Schemes (ELSS). Regular investments can help you save taxes and meet your financial goals.

SEBI Launches Portal for Reporting Technical Glitches

The Securities and Exchange Board of India (SEBI) has launched a new portal, iSPOT, to help market infrastructure institutions (MIIs) like stock exchanges report technical glitches. This will improve the traceability of issues and ensure better data quality. The portal will be in operation from February 3, 2025.

By staying informed about these updates, you can make smarter financial decisions in February.

 

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.

JSW Energy Cuts FY25 Capex to ₹10,000 Crore, Focuses on Acquisitions

JSW Energy has lowered its capital expenditure (capex) target for FY25 to ₹10,000 crore, down from the initial estimate of ₹15,000 crore. The company is shifting its focus towards acquisitions rather than organic expansion due to sectoral challenges like connectivity issues.

Capex Spending So Far

In the first 9 months of FY25, JSW Energy has spent ₹6,200 crore on capex. “We expect to close the year with around ₹10,000 crore in total capex,” said Pritesh Vinay, Director of Finance and CFO, during the Q3 earnings call.

Shift to Inorganic Growth

The company initially planned to invest more in organic projects but faced difficulties scaling them. To maintain steady growth, JSW Energy is now focusing on acquisitions.

Investment in O2 Power Projects

JSW Energy is allocating ₹13,000-14,000 crore for 2.4 GW of under-construction renewable projects from O2 Power, which it acquired for ₹12,468 crore in December. The projects are spread across 7 states, with 2.3 GW expected to be operational by June 2025 and 2.4 GW in various development stages.

Long-Term Growth Plans

JSW Energy aims to reach 10 GW capacity by FY25 and 20 GW by FY30. Currently, its under-construction capacity stands at 7.8 GW, with necessary land and transmission infrastructure in place.

The company’s net debt stands at ₹26,500 crore as of December 2024, with a net debt-to-EBITDA ratio of 4.5x.

JSW Energy’s 1 GWh battery energy storage system (BESS) is under regulatory review. Due to recent policy changes, there might be a slight delay, but the company remains confident in its long-term potential.

About JSW Energy Ltd

JSW Energy Ltd and its subsidiaries focus mainly on generating power from their plants in Karnataka, Maharashtra, Nandyal, and Salboni. It acts as the parent company for the JSW group’s power sector. The company also has a joint venture involved in mining and an associate that manufactures turbines.

JSW Energy share price is trading at ₹505.80, up by ₹21.95 (4.54%) as of 11:46 AM on January 31. The stock opened at ₹489.50, reached a high of ₹506.50, and a low of ₹482.20. Its market capitalisation stands at ₹88.17K crore, with a P/E ratio of 46.05 and a dividend yield of 0.40%. Over the past 52 weeks, the stock has hit a high of ₹804.90 and a low of ₹452.20.

 

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.

IGL 1:1 Bonus Issue: Record Date on January 31 – Are You Eligible?

Indraprastha Gas Ltd (IGL) has set January 31, 2025, as the record date for its 1:1 bonus share issue. This means investors must own IGL shares before the ex-date to be qualified for the bonus shares. 

Purchase Deadline for Eligibility

To be qualified for the bonus shares, investors must have IGL shares in their demat account by January 30, 2025, as the settlement process takes 1 day. Those who buy the stock on the ex-date will not be qualified for the bonus issue.

In a filing, the company stated, “This is further to our previous letters dated December 10, 2024, and January 16, 2025, regarding the approval for the 1:1 bonus issue. The Bonus Issue Committee has fixed Friday, January 31, 2025, as the record date to determine eligible shareholders.”

The bonus shares will be credited to eligible shareholders on February 3, 2025.

What is a Record Date?

The record date is set by the company to identify shareholders eligible for benefits like bonus shares, stock splits, or buybacks. Investors must hold shares in their demat accounts on this date to receive the bonus shares.

About Indraprastha Gas Limited

Indraprastha Gas Limited, founded in 1998, is an Indian company that distributes natural gas for cooking and vehicles, mainly in Delhi NCR. It is a joint venture of GAIL, Bharat Petroleum, and the Delhi government.

As of 11:26 AM IST on January 31, 2025, IGL share price is trading at ₹200.45, up ₹2.60 (1.31%). The stock opened at ₹197.00, reached a high of ₹201.15, and a low of ₹194.95. The company’s market capitalisation stands at ₹14,020 crore, with a P/E ratio of 8.27 and a dividend yield of 5.24%. Its 52-week high is ₹285.18, while the 52-week low is ₹153.05.

 

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.

Adani Ports Q3 FY25 Earnings: Profit Up 14%, Cargo Volume Growth Slows

Adani Ports and Special Economic Zone (APSEZ) reported a 14.12% increase in its profit for Q3 FY25, reaching ₹2,520.26 crore, compared to the same period last year. Revenue for the quarter increased by 15.1% YoY, reaching ₹7,963.55 crore. Expenses also grew by 13.13% YoY to ₹5,190.53 crore.

Cargo Volume Growth

The company handled 112.5 million metric tonnes (mmt) of cargo in Q3, a 3.6% year-on-year (YoY) growth. However, the growth was mainly driven by international cargo, which surged by 118% to 6 mmt. Domestic cargo growth was slower at just 1%. In contrast, Q1 and Q2 FY25 saw stronger growth at 8% and 10%, respectively.

EBITDA Growth

The company’sEBITDA rose by 15% YoY to ₹4,802 crore in Q3. It also upgraded its EBITDA forecast for FY25 to ₹18,800–₹18,900 crore.

9MFY25 Performance

For the first nine months of FY25 (9MFY25), the company posted a 33.1% YoY growth in profit to ₹8,078.09 crore. The total cargo volume for 9MFY25 reached 332 million tonnes, up by 7% YoY, with strong performance in containers, liquids, gas, and dry bulk cargo.

Debt and Financial Position

As of December 2024, APSEZ’s net debt stood at ₹45,653 crore, with a net debt-to-EBITDA ratio of 2.1 times, improving from 2.3 times in FY24.

APSEZ has set a full-year cargo volume guidance of 460-480 million tonnes for FY25.

About Adani Ports & Special Economic Zone

Adani Ports & Special Economic Zone is involved in developing, operating, and maintaining port infrastructure and related services. It also manages a multi-product Special Economic Zone (SEZ) and other infrastructure at Mundra Port.

Adani Ports share price is trading at ₹1,099.00, up by ₹21.95 (2.04%) as of 10:32 AM IST on January 31, 2025. The stock opened at ₹1,085.00, reached a high of ₹1,101.55, and a low of ₹1,074.00. 

 

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.

L&T Share Price Jumps Over 4% On Strong Q3 FY25 Earnings, Hits Record Order Inflow of ₹1.16 Lakh Crore

Larsen & Toubro (L&T) reported a 14% year-on-year (YoY) increase in consolidated net profit for Q3FY25, reaching ₹3,358.84 crore, compared to ₹2,947.36 crore in the same quarter last year. However, on a sequential basis, net profit declined by 1.07%. 

Revenue Performance

L&T’s consolidated revenue from operations rose 17.3% YoY to ₹64,667.78 crore in Q3FY25, up from ₹55,127.82 crore in Q3FY24. Sequentially, revenue increased by 5.1%. The strong revenue growth was driven by a robust order book and increased execution in the Projects & Manufacturing (P&M) sectors.

International Revenue Growth

The company’s international revenue for the quarter stood at ₹32,764 crore, contributing 51% of the total revenue. This reflects L&T’s expanding presence in global markets, particularly in its international P&M portfolio.

EBITDA and Margins

L&T reported Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of ₹6,255 crore for Q3FY25, compared to ₹5,759 crore in the same quarter last year. However, the EBITDA margin declined to 9.7% from 10.4% in Q3FY24.

Record Order Inflow

L&T secured its highest-ever quarterly orders, totalling ₹1,16,036 crore in Q3FY25, marking a 53% YoY increase. The new orders came from multiple sectors, including:

  • Thermal Power
  • Renewable Energy
  • Power Transmission
  • Precision Engineering
  • Minerals & Metals
  • Water & Commercial Buildings
  • Hydrocarbon Onshore

International orders accounted for ₹62,059 crore, making up 53% of the total order inflow.

As of December 31, 2024, L&T’s total order book stood at ₹5,64,223 crore, reflecting a 19% increase from March 2024. International orders contributed 42% of the total, further strengthening the company’s global footprint.

About Larsen & Toubro Limited

Larsen & Toubro Limited (L&T) is a large Indian multinational company that is involved in various industries. It operates in engineering, construction, manufacturing, power, industrial technology, IT, defence, and financial services. The company is based in Mumbai, Maharashtra.

As of January 31, 2025, at 10:10 AM IST, L&T share price is trading at ₹3,558.00, up ₹137.05 (4.01%) for the day. The stock opened at ₹3,501.05, reached a high of ₹3,590.00, and hit a low of ₹3,481.05. The company has a market capitalisation of ₹4.89 lakh crore, a price-to-earnings (P/E) ratio of 36.19, and a dividend yield of 0.79%. The stock’s 52-week high is ₹3,963.50, while its 52-week low is ₹3,175.05.

 

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.

Bank of Baroda Q3 FY25 Profit Rises 6% YoY to ₹4,837 Crore; Stock Drops 4%

State-owned Bank of Baroda (BoB) reported a 6% year-on-year (YoY) increase in net profit for the third quarter of FY25, reaching ₹4,837 crore, compared to ₹4,579 crore in the same quarter last year.

Revenue and Income

The bank’s net interest income (NII) rose 2.8% YoY to ₹11,417 crore, up from ₹11,101 crore in Q3FY24. Total income for the quarter increased to ₹34,676 crore, compared to ₹31,416 crore in the previous year.

Quarter-on-Quarter Decline

On a sequential basis, net profit fell 7.6% from ₹5,238 crore in Q2FY25. Similarly, NII declined 1.76% from ₹11,622 crore in the previous quarter.

Operating Profit and Asset Quality

The operating profit improved to ₹7,664 crore, up from ₹7,015 crore last year. The bank’s gross non-performing assets (GNPA) ratio improved to 2.43%, down from 3.08% a year ago. Net NPAs also reduced to 0.59%, compared to 0.7% in Q3FY24.

Provisions and Capital Adequacy

The bank’s total provisions (excluding taxes) increased to ₹1,082 crore, up from ₹666 crore last year. Meanwhile, the Capital Adequacy Ratio (CAR) declined to 14.72%, compared to 15.96% in the previous year.

Loan Growth

BoB’s global advances grew 11.8% YoY, driven by strong demand for retail loans. Retail advances rose 19.5%, with key segments showing strong growth:

  • Auto Loans: Up 21.1%
  • Home Loans: Up 16.6%
  • Mortgage Loans: Up 16.3%
  • Education Loans: Up 16.9%

The bank’s performance reflects steady income growth, improving asset quality, and strong demand in the retail loan sector.

About Bank of Baroda

Bank of Baroda is a government-owned public sector bank based in Vadodara, Gujarat. It is the 2nd-largest public sector bank in India, following the State Bank of India. As per 2023 data, the bank holds the 586th position on the Forbes Global 2000 list.

As of January 31, 2025, at 9:43 AM IST, Bank of Baroda share price (NSE: BANKBARODA) is trading at ₹212.90, down ₹9.49 (4.27%) for the day. The stock opened at ₹218.50, reached a high of ₹218.50, and hit a low of ₹211.75. 

 

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.

Top Gainers and Losers on January 30, 2025: BEL, Power Grid Lead; Tata Motors, ITC Hotels Decline

On January 30, 2025, Indian stock markets continued their upward trend for the third straight session, ending the day in positive territory. The BSE Sensex gained 226.85 points (0.30%), closing at 76,759.81. During the day, it reached a high of 76,898.63 and a low of 76,401.13.

Similarly, the NSE Nifty50 rose by 86.40 points (0.37%) to finish at 23,249.50. The index fluctuated between 23,311.15 at its highest and 23,139.20 at its lowest.

Here are the top gainers and losers on January 30, 2025: 

Top Gainers of the Day

Symbol Open High Low LTP %chng
BEL 268.85 280.5 267.9 280.2 4.87
POWERGRID 287.85 297.1 287.85 295.9 2.8
HEROMOTOCO 4,079.20 4,187.00 4,060.05 4,185.00 2.76
BHARTIARTL 1,606.70 1,644.95 1,595.20 1,642.50 2.63
CIPLA 1,431.00 1,469.80 1,426.00 1,459.95 2.53

 

  • BEL surged 4.87% to ₹280.2, touching a high of ₹280.5.
  • Power Grid gained 2.8% to ₹295.9, after opening at ₹287.85.
  • Hero MotoCorp advanced 2.76% to ₹4,185, hitting ₹4,187 intraday.
  • Bharti Airtel rose 2.63% to ₹1,642.50, with a high of ₹1,644.95.
  • Cipla climbed 2.53% to ₹1,459.95, trading between ₹1,426 and ₹1,469.80.

Top Losers of the Day

Symbol Open High Low LTP %chng
TATAMOTORS 709 710.7 683.2 699.95 -6.98
ITCHOTELS 168 175.8 163.25 163.25 -5
ADANIENT 2,325.00 2,351.50 2,201.30 2,247.90 -3.05
SHRIRAMFIN 553.5 560 536.85 540.85 -2.29
BAJAJFINSV 1,825.00 1,856.00 1,741.00 1,750.00 -2.26
  • Tata Motors fell 6.98% to ₹699.95, hitting a low of ₹683.2.
  • ITC Hotels declined 5% to ₹163.25, after reaching ₹175.8 intraday.
  • Adani Enterprises slipped 3.05% to ₹2,247.90, trading between ₹2,201.30 and ₹2,351.50.
  • Shriram Finance dropped 2.29% to ₹540.85, touching a low of ₹536.85.
  • Bajaj Finserv edged down 2.26% to ₹1,750, after fluctuating between ₹1,741 and ₹1,856.

 

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.

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

Name Market Cap (In ₹ Crore) ↓5Y CAGR (%) 1Y Return (%) Net Profit Margin (%)
Praj Industries Ltd 12,150.96 41.65 28.97 8.04
IRB Infrastructure Developers Ltd 31,565.85 35.85 -12.81 7.39
NCC Ltd 14,873.69 32.64 11.64 3.39
Ircon International Ltd 18,262.93 32 -20.48 7.2
NBCC (India) Ltd 24,753.60 30.45 8.28 3.76

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

Name ↓Market Cap (In ₹ Crore) 5Y CAGR (%) 1Y Return (%) Net Profit Margin (%)
Larsen and Toubro Ltd 4,74,378.82 20.36 -6.97 5.79
GMR Airports Ltd 75,243.26 24.52 -8.87 -5.86
IRB Infrastructure Developers Ltd 31,565.85 35.85 -12.81 7.39
NBCC (India) Ltd 24,753.60 30.45 8.28 3.76
KEC International Ltd 21,604.79 18.67 30.13 1.74

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

Name Market Cap (In ₹ Crore) 5Y CAGR (%) 1Y Return (%) ↓Net Profit Margin (%)
KNR Constructions Ltd 8,157.21 14.27 8.43 16.93
Techno Electric & Engineering Company Ltd 12,737.71 29.74 34.58 16.38
G R Infraprojects Ltd 12,205.24 – 6.51 14.09
Engineers India Ltd 9,165.79 11.01 -30.56 12.72
PNC Infratech Ltd 7,830.86 9.14 -29.69 10.42

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.

How is the Fitment Factor Calculated in the 8th Pay Commission?

The Union Cabinet has approved the formation of the 8th Pay Commission to revise the pay structure for over 50 lakh Central government employees just before the Union Budget 2025. This includes salary revisions and adjustments to the Dearness Allowance.

Salary Increase Under the 8th Pay Commission

The exact percentage of the salary hike under the 8th Pay Commission is yet to be revealed. However, looking at past pay commissions can give an idea of what to expect.

What is the Fitment Factor?

The fitment factor is a key multiplier used to calculate the revised basic salary and pensions for government employees. It determines the new pay by multiplying the current basic pay with the fitment factor.

How the Fitment Factor Works in Pay Hikes

In the 7th Pay Commission, a fitment factor of 2.57 was recommended, which increased the minimum basic salary for government employees to ₹18,000 per month from ₹7,000 (based on the previous pay commission). The same method will be applied for the 8th Pay Commission.

Purpose of Pay Commissions

Pay Commissions are set up by the government to review and recommend necessary adjustments to the salaries and pensions of government employees, taking into account inflation and other economic factors.

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.