Top five road stocks in India ranked by order book

India's road and highway sector is experiencing significant growth, supported by government initiatives. The National Highway network has expanded by 60% over the past decade, reaching over 146,000 kilometers. Key programs have accelerated the construction of highways, with more than 12,000 kilometers completed in 2023-24 alone. With this infrastructure boom, several companies are leading the way in road and highway construction. Here are the top five stocks based on their order book value: **1. H.G. Infra Engineering** H.G. Infra has established itself in executing large infrastructure projects. It focuses on roads, highways, railways, metro, and solar projects. As of December 2024, it has an order book of ₹11,200 crore. The company’s sales and net profits have shown strong growth, averaging around 21% and 33% respectively over the past five years. H.G. Infra continues to see optimism in its road projects despite facing challenges like land acquisition delays. **2. PNC Infratech** PNC Infratech specializes in highways, bridges, and water supply projects. With an order book of ₹8,800 crore, the company has successfully delivered large-scale projects across India. It expects to secure new orders worth ₹13,000-15,000 crore for the next fiscal year. Financially, PNC has reported good growth with sales and profits rising by 18% and 21% over five years. **3. Adani Enterprises** Through its subsidiary Adani Road Transport, the company focuses on national highways and expressways. Adani's revenue reached ₹7,200 crore in the first nine months of the fiscal year, supported by several major projects. Their sales and profits have grown at a rate of 19% and 71% respectively between 2020 and 2024. The company is focusing on new project tenders to leverage growth. **4. KNR Constructions** KNR Constructions engages in various infrastructure sectors, with a strong portfolio in roads and highways. Its order book stands at ₹5,500 crore. The company has shown a steady financial performance with a sales growth of 14% and a net profit increase of 23% over five years. KNR is eyeing a diverse set of new contracts, although recent project execution has slowed. **5. Welspun Enterprises** Welspun operates across roads and water management, focusing on project efficiency. With an order book of ₹1,700 crore for roads, the company is also expanding into water and tunneling projects. It has posted a sales growth of 10% and a net profit increase of 19% over five years. Welspun aims to secure significant new contracts in the upcoming fiscal year. In summary, India’s road sector is poised for tremendous growth thanks to ongoing government investments. While these five companies are well-positioned for this opportunity, they also face challenges like competition and project execution issues. Investors should keep an eye on their order inflows and financial practices as they navigate this promising yet competitive sector.