Synopsis: Axis Securities has selected three top picks in the infrastructure and road sector, citing strong growth prospects. They anticipate up to a 27% upside for Rites Ltd and 21% upside in both Kalpataru and Ahluwalia Contracts.
Axis Securities Ltd., a retail brokerage and investment services firm in India and a wholly owned subsidiary of Axis Bank, has selected three stocks from the Infrastructure and Road sectors to focus on. The brokerage anticipates that one of these stocks could see a potential upside of up to 28%.
The Brokerage has highlighted Kalpataru Projects, RITES, and Ahluwalia Contracts as its top picks in the infrastructure and road sectors. The brokerage expects these companies to benefit further, reflecting strong growth prospects and favorable market conditions in the sector.
Rationale for these stocks
The brokerage expects one of the selected stocks to deliver as much as a 28 percent upside, signaling strong growth potential in the infrastructure and road sectors. These stocks were chosen based on factors such as robust order inflows, increased government capital expenditure through initiatives aimed at boosting sector growth, and improved prospects in the transmission segment, which is likely to see better tendering and higher order intake.
Kalpataru Projects International Ltd
Kalpataru Projects International Limited (KPIL) is a leading global Engineering, Procurement, and Construction (EPC) company based in India, established in 1981. With over decades of experience, it specializes in power transmission, oil & gas pipelines, railways, infrastructure development, and water projects. KPIL boasts a strong consolidated order book and a focus on sustainable, high-impact infrastructure projects.
The brokerage has assigned a Buy rating to Kalpataru Projects International, with a target price of Rs 1,450, indicating a potential upside of over 20.7 percent from the day’s close price of Rs. 1201.05.
Axis Securities reported that the company’s order book remains robust at Rs 63,287 crore as of December 2025, led by 41% from T&D, 29% from B&F, 13% from Water, 8% from Oil & Gas, 4% from Railways, and 5% from Urban Infra. Strong execution and growing opportunities across all segments position the company for steady revenue growth, with a projected 21% CAGR from FY25 to FY27.
The T&D business outlook reinforces Axis Securities’ positive recommendation, while the B&F segment achieved a record order inflow of Rs 10,911 crore. The report notes that this strong momentum is expected to continue, supporting overall growth prospects.
Rites Ltd
RITES Limited (Rail India Technical and Economic Service) is a leading Navratna, Schedule ‘A’ Central Public Sector Enterprise under the Indian Ministry of Railways, incorporated in 1974. It is a premier multi-disciplinary engineering and consultancy organization specializing in transport infrastructure, including railways, metros, airports, highways, and sustainability.
The brokerage has assigned a Buy rating to Rites Ltd, with a target price of Rs. 275, indicating a potential upside of over 27 percent from the day’s close price of Rs. 215.75.
Axis Securities stated that, in Q3FY26, the company secured over 140 new orders worth Rs 1,141 crore, boosting its total order book to Rs 9,262 crore, providing strong revenue visibility for the next 2–2.5 years. Notably, the consultancy segment comprises around 30% of the order book, contributing to a superior margin profile. This growth has led brokerages to project a revenue CAGR of 10% over FY25–FY27.
The turnkey segment is showing signs of recovery, with revenues currently subdued as most projects are in the early stages. However, as these projects advance, execution is expected to pick up, driving a sharper acceleration in revenue momentum moving forward.
Ahluwalia Contracts India Ltd
Ahluwalia Contracts (India) Ltd (ACIL) is a premier Delhi-based EPC and civil construction company established in 1965 (incorporated 1979). It specializes in constructing landmark commercial, residential, and institutional buildings, including hospitals, IT parks, and metro stations, with over years of experience. ACIL is a major player in the Indian infrastructure sector.
The brokerage has assigned a Buy rating to Ahluwalia Contracts India Ltd, with a target price of Rs. 915, indicating a potential upside of over 21 percent from the day’s close price of Rs. 755.00.
Axis Securities noted that, as of December 2025, the company has a strong order book of Rs. 18,680 crore, providing solid revenue visibility for the next 2.5–3 years. Its revenue is well-diversified across geographies, with the North contributing 46.2%, the West 28.3%, the East 17.7%, the South 6.7%, and Overseas 1.1%.
The company is demonstrating strong execution capabilities, having already achieved its FY26 order inflow guidance of Rs 8,000 crore. It has reported impressive YTD order inflows of Rs 9,562 crore and currently holds L1 status in four projects worth Rs 2,485 crore, signaling a healthy near-term order conversion pipeline.
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