Axis Securities has picked a set of three stocks from the Infra and Road sectors to bet on. The brokerage sees as much as 27% increase coming in one of the stocks. It picked the stocks based on better order inflow, increased government capex through various initiatives to support growth in the sector, and the transmission sector to witness better tendering and order intake.
Kalpataru Projects International
The brokerage house has a Buy rating on Kalpataru Projects International, with a target price of Rs 1,450, implying an upside of more than 27% from the current market price.
Axis Securities said that the company’s order book stands strong at Rs 63,287 crore as of December 2025, with 41% from T&D, 29% from B&F, 13% from Water, 8% from Oil & Gas, 4% from Railways, and 5% from Urban Infra.
The order book is backed by a strong execution track record and expanding opportunities across all segments. This positions the company for steady revenue growth, projecting a 21% CAGR from FY25 to FY27.
Also, the firm’s T&D business outlook supports the positive recommendation by Axis Securities. The B&F segment achieved a record-high order inflow of Rs 10,911 crore, and “this momentum is expected to continue,” stated the report.
RITES
Axis Securities’ second pick is Rites, with a target price of Rs 275 per share. This implies an upside of 26% from current levels.
In Q3FY26, the company secured over 140 new orders aggregating Rs 1,141 crore, taking the total order book to Rs 9,262 crore, which provides strong revenue visibility for the next 2–2.5 years. Importantly, the consultancy segment accounts for around 30% of the order book, supporting a superior margin profile.
This led the brokerage to assume revenue growth at a CAGR of 10% over FY25–FY27.
The turnkey segment has begun to show an uptick from this quarter. While turnkey revenues have declined currently, as most projects remain in the early stages, execution is expected to pick up as these projects progress to more advanced stages, which drives a sharper acceleration in revenue momentum.
Ahluwalia Contracts India
The last pick from the Infra and road sector is Ahluwalia Contracts (India). The brokerage set a price target of Rs 915 on the stock, implying a further lift of 13%. With a strong order book of Rs 18,680 crore as of December, 2025, the firm provides a revenue visibility for the next 2.5–3 years.
The company’s revenue is diversified across different geographies. East constitutes 17.7%, North 46.2%, West 28.3%, South 6.7%, and Overseas 1.1%.
The company boasts strong execution as the management gave the guidance of Rs 8,000 crore order inflow for FY26, which has already been achieved.
It reported robust YTD order inflows of Rs 9,562 crore and currently holds L1 (Lowest Bidder 1) status in four projects aggregating Rs 2,485 crore, indicating a healthy near- term order conversion pipeline.
Overall, the brokerage expects these firms to achieve steady revenue growth through 2027 as infrastructure execution accelerates.