Industry Profile: Infrastructure is vital for any developing economy like India. Roads, dams, bridges, ports, and airports are essential for the development of the economy. Govt of India understands the importance of such things and working for the development. India is the second-largest network of roads, 4.7 million km. It is the reason for 60% of transport of goods and 85% of passenger traffic in India. Road transport has been gradually increasing due to increased connectivity between towns and cities. In addition, increased sales of automobiles and movement of freight are also reasons for the development of roads.
Road sector through enjoying the attention, Port and airport came into limelight recently compared to roads and railway. The Engineering sector is also essential for being a developed economy with a port. Capital goods and Engineering sector turnover is expected to reach $140 billion by 2020. Engineering exports account for 60% of total export, mainly to the US and Europe. Recently export to Bangladesh, Japan, and South Korea increased.
Company Profile: The company is a major Indian multinational in Technology, Engineering, Construction, manufacturing, and financial services. It also operates in sectors like Hydrocarbon, Power, Infrastructure, defense, and Realty. The company is engaged in constructing buildings and factories, Turnkey Projects for industries like Power and Water Treatment, and waste treatment. Building, repairment service of Power plants. Heavy Engineering, including Custom designed and engineered and service of critical equipment. Electrical and automation work for business—shipbuilding and defense, Service related to the financial services sector, Infrastructure Financial. Mutual Funds. IT and Services.
Shareholding Pattern: BSE Data
Financials and Ratios : [table id=60 /]
Future Prospects: The company is the leader in infrastructure. Recently the company sold non-core investments to reduce debt. The company is concentrating on the defense sector as per its five-year plan. Govt of India is also focused on the program to make defense-related products. So the goal for it is ready. Even though there is no Promoter, the company is in the hands of financial institutions like SBI and LIC, so indirectly, Govt of India is holding it. So there is no problem with corporate governance—an excellent company to keep in your portfolio.
