Budget 2023’s infra gift to mutual funds: The mid- and small- cap stocks that infrastructure MFs love to hold

Budget 2023 continued the government’s commitment to push the infrastructure sector with a slew of announcements. The finance minister listed the infrastructure-related investment as one among the seven key priorities of the Union Budget 2023. Deepak Jasani, Head of Retail Research, HDFC Securities says, “capital investment outlay is being increased steeply for the third year in a row by 33% to Rs. 10 trillion, which would be 3.3% of GDP. The government will allocate Rs 10,000 crore per year to the Urban Infrastructure Development Fund that would be used for creating infrastructure in tier-2 and tier-3 cities. Outlay for Roads and Bridges has risen from Rs.1.97 trillion to Rs.2.40 trillion. The capital outlay of Rs. 2.40 lakh Cr has been provided for the Railways. These Budget provisions will benefit companies engaged in the Cement, Metals, Engineering and Infra (road, railways) sectors”. Here are the most popular midcap and smallcap infrastructure stocks among the 18 infrastructure mutual funds. Data as on December 31, 2022. Source: ACEMF.

Container Corporation Of India
M-CAP type: Mid-cap
Industry: Transportation
No. of Infrastructure funds that held the stock: 12
Sample of Infrastructure funds that held the stock: Kotak Infra & Eco Reform, LIC MF Infra and IDFC Infrastructure

Cummins India
M-CAP type: Mid-cap
Industry: Industrial Products
No. of Infrastructure funds that held the stock: 12
Sample of Infrastructure funds that held the stock: Tata Infrastructure, Invesco India Infrastructure and Kotak Infra & Eco Reform

PNC Infratech
M-CAP type: Small-cap
Industry: Construction
No. of Infrastructure funds that held the stock: 12
Sample of Infrastructure funds that held the stock: Invesco India Infrastructure, IDFC Infrastructure and Aditya Birla SL Infrastructurez

AIA Engineering
M-CAP type: Mid-cap
Industry: Industrial Products
No. of Infrastructure funds that held the stock: 10
Sample of Infrastructure funds that held the stock: Kotak Infra & Eco Reform, Tata Infrastructure and HDFC Infrastructure

KNR Constructions
M-CAP type: Small-cap
Industry: Construction
No. of Infrastructure funds that held the stock: 10
Sample of Infrastructure funds that held the stock: Canara Rob Infrastructure, Invesco India and Infrastructure and Tata Infrastructure

Bharat Forge
M-CAP type: Mid-cap
Industry: Industrial Products
No. of Infrastructure funds that held the stock: 8
Sample of Infrastructure funds that held the stock: LIC MF Infra, Taurus Infrastructure and UTI Infrastructure

Carborundum Universal
M-CAP type: Small-cap
Industry: Industrial Products
No. of Infrastructure funds that held the stock: 8
Sample of Infrastructure funds that held the stock: SBI Infrastructure, HSBC Infrastructure and Aditya Birla SL Infrastructure

Grindwell Norton
M-CAP type: Mid-cap
Industry: Industrial Products
No. of Infrastructure funds that held the stock: 8
Sample of Infrastructure funds that held the stock: Tata Infrastructure, Canara Rob Infrastructure and Sundaram Infra Advantage

Honeywell Automation India
M-CAP type: Mid-cap
Industry: Industrial Capital Goods
No. of Infrastructure funds that held the stock: 8
Sample of Infrastructure funds that held the stock: Canara Rob Infrastructure, Tata Infrastructure and Invesco India Infrastructure

H.G. Infra Engineering
M-CAP type: Small-cap
Industry: Construction Project
No. of Infrastructure funds that held the stock: 7
Sample of Infrastructure funds that held the stock: Aditya Birla SL Infrastructure, IDFC Infrastructure and HSBC Infrastructure

Thermax
M-CAP type: Mid-cap
Industry: Industrial Capital Goods
No. of Infrastructure funds that held the stock: 7
Sample of Infrastructure funds that held the stock: IDFC Infrastructure, Kotak Infra & Eco Reform and Canara Rob Infrastructure

KEI Industries
M-CAP type: Small-cap
Industry: Industrial Products
No. of Infrastructure funds that held the stock: 7
Sample of Infrastructure funds that held the stock: Franklin Build India, Invesco India Infrastructure and HSBC Infrastructure

Indraprastha Gas
M-CAP type: Mid-cap
Industry: Gas
No. of Infrastructure funds that held the stock: 7
Sample of Infrastructure funds that held the stock: Kotak Infra & Eco Reform, Franklin Build India and UTI Infrastructure

GR Infraprojects
M-CAP type: Small-cap
Industry: Civil Construction
No. of Infrastructure funds that held the stock: 7
Sample of Infrastructure funds that held the stock: HDFC Infrastructure, Invesco India Infrastructure and Aditya Birla SL Infrastructure

Timken India
M-CAP type: Mid-cap
Industry: Industrial Products
No. of Infrastructure funds that held the stock: 7
Sample of Infrastructure funds that held the stock: LIC MF Infra, Tata Infrastructure and Invesco India Infrastructure