Capex push to continue under Modi 3.0; L&T, IRB, NCC to ride the wave, says CLSA

Narendra Modi-led NDA secured a third term, but the BJP, by itself, fell 32 short of the majority mark of 272 seats in the Lok Sabha.

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26 Aug, 2025 12:21

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Analysts at global brokerage firm CLSA are painting a promising picture for Modi 3.0, buoyed by robust support from its political allies. This comes after the BJP failed to hit the majority mark all by itself, landing in a position wherein it needs support from its allies to stay in power.

CLSA further said that its channel checks hint at an ambitious 100-day agenda being set, poised to propel the incoming Modi government into action. The brokerage believes that the incoming government will hit the ground running with large orders across infra and defence sectors.

Meanwhile, the firm feels that innovative funding and RBI's dividend bounty should ensure funding for any social calls, in a way, easing concerns over the coalition government titling towards more populist measures.

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Furthermore, while the need for allies to stay in power is seen as a cause of worry for the BJP, CLSA believes that demands from coalition partners for more capital expenditure are likely to revive capex on the state level as well.

Rounding that up, CLSA names companies like Larsen & Toubro, IRB Infra, NCC and J Kumar Infraprojects, mainly firms operating in the construction and capital goods space, to remain the key beneficiaries of Modi's return to power for a third tenure.

At 09.18 am, shares of L&T,  IRB Infra, NCC and J Kumar Infraprojects were trading 0.2-4.2 percent higher on the NSE.

Also Read | CLSA keeps 2 out of 54 ‘Modi stocks’ in India focus portfolio after poll verdict

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