Best Infrastructure Stocks In August 2025: NCC, Praj Industries, L&T and More - Based on 5-Yr CAGR

India’s journey toward becoming a $5 trillion economy by 2025 relies heavily on strong infrastructure development. To drive this growth, the government has launched key programs such as the National Infrastructure Pipeline (NIP), 'Make in India', and the Production-Linked Incentive (PLI) scheme. Traditionally, over 80% of infrastructure investment has been allocated to core sectors like transport, power, water, and irrigation.

With changing demographics and environmental needs, the government is now expanding its focus to include areas like housing, sanitation, digital infrastructure, and enhanced transport services. These developments aim to spur economic growth, improve living standards, and strengthen the country’s global competitiveness.

In this article, we highlight the top infrastructure stocks in August 2025, selected based on their 5-year Compound Annual Growth Rate (CAGR), market capitalisation, and net profit margins.

Best Infrastructure Stocks in August 2025 – 5-Year CAGR Basis

Note: The best infrastructure stocks in August are selected from the Nifty 500 universe and sorted based on a 5-year CAGR as of July 31, 2025.

Overview of Best Infrastructure Stocks in India

1. Techno Electric & Engineering Company

Techno Electric & Engineering Company Ltd (TEECL) offers services in the power infrastructure sector, including Engineering, Procurement and Construction (EPC), asset ownership, and operations and maintenance.

For the quarter ended March 2025, Techno Electric & Engineering Company Ltd reported a revenue of ₹811.91 crore and a net profit of ₹132.78 crore. In the December 2024 quarter, the company posted a revenue of ₹675.90 crore and a net profit of ₹104.57 crore. 

Key metrics: 

• Earning per share (EPS): ₹36.81
• Return on equity (ROE): 12.13%

2. NCC Limited

Founded in 1978, NCC Limited specialises in executing EPC contracts and BOT projects through Public-Private Partnerships. Its core operations include the construction of roads, buildings, irrigation facilities, water and environment projects, electrical infrastructure, as well as ventures in mining, metals, and railways.

For the quarter ended March 2025, NCC Limited reported a revenue of ₹5,376.06 crore and a net profit of ₹214.40 crore. In December 2024, the company recorded ₹4,670.98 crore in revenue and ₹185.40 crore in net profit. 

Key metrics: 

• EPS: ₹12.12
• ROE: 10.82%

3. Praj Industries Ltd.

Established in 1983, Praj Industries Ltd. is a globally recognised company in the fields of biotechnology and engineering. It offers environmentally friendly solutions across bioenergy, wastewater treatment, breweries, process equipment, and water management. 

For the fiscal year 2024–25, Praj Industries reported a total revenue of ₹2,744.66 crore. In the March 2025 quarter, the company posted revenue of ₹701.12 crore and a net profit of ₹58.99 crore, compared to ₹739.37 crore revenue and ₹55.72 crore net profit in the December 2024 quarter. 

Key metrics: 

• Earning per share (EPS): ₹14.39
• Return on equity (ROE): 20.38%

4. NBCC (India) Limited

NBCC (India) Limited, a prominent public sector enterprise under the Ministry of Housing and Urban Affairs, operates across three main segments: Project Management Consultancy (PMC), Engineering Procurement & Construction (EPC), and Real Estate development.

In the quarter ended March 2025, NBCC (India) Limited reported a revenue of ₹3,217.54 crore and a net profit of ₹137.19 crore. For the December 2024 quarter, revenue stood at ₹2,047.77 crore with a net profit of ₹128.60 crore. 

Key metrics: 

• EPS: ₹1.76
• ROE: 21.30%

5. Larsen & Toubro Ltd

Larsen & Toubro Ltd is a global conglomerate that mainly offers engineering, procurement, and construction (EPC) services across critical sectors like infrastructure, hydrocarbons, power, process industries, defence, information technology, and financial services. The company operates both in India and internationally.

For the quarter ended June 2025, Larsen & Toubro Ltd reported a revenue of ₹33,470.73 crore and a net profit of ₹3,485.30 crore. In the previous quarter (Dec 2024), the company posted a revenue of ₹34,984.28 crore and a net profit of ₹2,419.38 crore.

Key metrics: 

• EPS: ₹124.69
• ROE: 26.00%

Best Infrastructure Stocks in August 2025 – Net Profit Margin Basis

Note: The best infrastructure stocks in August are selected from the Nifty 500 universe and sorted based on a net profit margin as of July 31, 2025.

Best Infrastructure Stocks in August 2025 – Market Cap Basis

Note: The best infrastructure stocks in August are selected from the Nifty 500 universe and sorted based on market cap as of July 31, 2025.

Read More:Upcoming Dividends in August 2025: Eicher Motors, MCX, and PTC India, Among Others!

Key Factors to Keep in Mind Before Investing in Infrastructure Stocks

Rising Demand: Economic growth and urbanisation naturally lead to increased infrastructure needs, driving long-term opportunities.

Policy Influence: Government initiatives and budget allocations for infrastructure projects can significantly impact company performance and stock returns.

Company Analysis: Investors should examine financial metrics such as revenue, profit margins, debt levels, and growth potential based on existing and future projects.

Sector-Specific Risks: Infrastructure is sensitive to political events and economic shifts, which may affect project timelines and profitability.

Market Leadership: Consider a company’s standing in the industry, its strengths over competitors, and how effectively it adopts innovative infrastructure solutions.

Long-Term Outlook: These stocks are typically better suited for long-term investors seeking steady growth and potential dividend income.

Conclusion

Infrastructure plays a foundational role in India’s economic growth story. For investors, infrastructure stocks offer promising long-term prospects. However, it’s essential to evaluate a company’s fundamentals, align with your investment goals, and understand the sector dynamics before investing

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.