It can be a smart decision to invest in infrastructure stocks which are trading below their market value. These undervalued stocks represent strong sectors with long-term growth potential, showing economic recovery and development. Low P/E ratios are offering great entry points for strategic investments.
Reasons for Price decline in Indian infrastructure stocks
The recent Price decline in Indian infrastructure stocks is due to a few reasons:
- Rising interest rates by the Reserve Bank of India (RBI) increasing borrowing costs,
- Global economic uncertainties affecting investor sentiment,
- Project delays,
- Higher input costs,
- Profit booking after gains,
- High stock valuations
- Slow implementation of government projects like the National Infrastructure Pipeline.
These factors have led to reduced investor confidence and stock corrections.
3 infra stocks with a P/E ratio less than 9
Here are 3 infra stocks with a P/E ratio less than 9:
1. PNC Infra Tech Limited
- Established: 1989 in Agra
- Focus: Highways, bridges, power transmission lines
- Profit (FY2024): ₹909 crore (up 38.2% from FY2023)
- Market Cap: ₹7,690 crore
- Current Market Price: ₹305.80
- 52 Week High/Low: ₹279.00 – ₹574.80
- Discount: 45% from the start of the year
- P/E Ratio: 6.33
2. KNR Constructions
- Established: 1995
- Focus: Road infrastructure (highways, flyovers, irrigation systems)
- Profit (FY2024): ₹752 crore (up 71.3% from FY2023)
- Market Cap: ₹8,570 crore
- Current Market Price: ₹293.50
- 52 Week High/Low: ₹236.75 – ₹415.40
- Discount: 21.90%
- P/E Ratio: 7.46
3. Ashoka Buildcon
- Focus: EPC and PPP projects for roads and highways, both in India and internationally
- Profit (FY2024): ₹521 crore (up 77.3% from FY2023)
- Market Cap: ₹7,690 crore
- Current Market Price: ₹258.10
- 52 Week High/Low: ₹140.90 – ₹319.00
- Discount: 16%
- P/E Ratio: 7.78
Also Read: Indian Railway Stocks to Watch: Upto 50% Discount from High
Summary
| Company | Market Cap (₹ Crores) | Current Price (₹) | P/E Ratio | Discount |
| PNC Infratech Limited | 7,690 | 305.80 | 6.33 | 45% |
| KNR Constructions | 8,570 | 293.50 | 7.46 | 21.90% |
| Ashoka Buildcon | 7,690 | 258.10 | 7.78 | 16% |
Also Read: 4 Railway PSU Stocks to Watch: FII Holdings Increased in 2025
These stocks are trading at a discount and have a P/E ratio of less than 9, making them interesting additions to your watchlist.