Global research house Jefferies is positive road-focussed companies like IRB Infrastructure, Ashoka Buildcon and Sadbhav Infrastructure Projects.
It expects a strong quarter of execution from road-focussed companies on healthy orderbooks.
"2-81 percent growth in orderbooks provides revenue visibility for next more than two years but the traffic growth is expected to remain weak in Q2 like the last three quarters," Jefferies said.
The research firm likes Ashoka Buildcon due to revenue growth visibility and stable margin. It has a buy rating on the stock with target of Rs 190 per share.
Jefferies also has a buy rating on Sadbhav Infra with target of Rs 330 per share while it has a hold rating on IRB Infrastructure with target of Rs 221.
IRB's construction order book for the quarter ended June 2017 was at Rs 8,900 crore.
At 12:29 hours IST, the stock price of Sadbhav Infrastructure Projects was up 10.68 percent at Rs 100 while Ashoka Buildcon was down 1.27 percent at Rs 184 and IRB Infrastructure Developers fell 7.35 percent to Rs 221.95 on the BSE.
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