Best Infrastructure Stocks in India

As per Equitymaster's Stock Screener, here is a list of the top infra companies in India right now...

• #1 L&T
• #2 SIEMENS
• #3 ABB INDIA
• #4 TATA POWER
• #5 CUMMINS INDIA

These companies have been ranked as per their market capitalization. The higher the market cap, the higher the total value of the company.

Of course, there are other parameters you should take into account before forming a hard opinion on the stock valuation.

Infrastructure stocks are usually risker as their fortunes are prone to economic booms and busts. For this reason, they are called cyclical stocks. Cyclical stocks do well when the economy is doing well and vice versa.

However, before selecting a stock, one must check whether the industry is due for revival or not.

The details of listed infrastructure companies can be found on the NSE and BSE website.

For a curated list, you can check out our list of infrastructure stocks.

There is no consistent trend of dividends across the industry, with different companies having different dividend policies.

For more details, check out the top infra stocks offering high dividend yields.

Investing in stocks requires careful analysis of financial data to find out a company's true worth. However, an easier way to find out about a company's performance is to look at its financial ratios.

Two commonly used financial ratios used in the valuation of stocks are -

Price to Earnings Ratio (P/E) - It compares the company's stock price with its earnings per share. The higher the P/E ratio, the more expensive the stock.

To find stocks with favorable P/E Ratios, check out our list of infrastructure stocks according to their P/E Ratios.

Price to Book Value Ratio (P/BV) - It compares a firm's market capitalization to its book value. A high P/BV indicates markets believe the company's assets to be undervalued and vice versa.

To find stocks with favorable P/BV Ratios, check out our list of infrastructure stocks according to their P/BV Ratios.