As debt levels inch up for road developers, time for investors to hit the brakes2 min read . Updated: 19 Jun 2019, 11:30 PM IST
- While companies had robust order booking, especially in the roads segment, between FY17 and FY18, the last fiscal year was a bit dull
- The rise in balance sheet leverage is mirrored in higher debt-equity ratio
Shares of construction firms have rallied on the back of strong execution and the resultant improvement in revenue growth over the last few quarters. Road construction firms, such as PNC Infratech Ltd, KNR Constructions Ltd, Sadbhav Engineering Ltd and NCC Ltd, have gained 32%, 35%, 22% and 11%, respectively, since January. During the same time, the Nifty Midcap index lost 4%.
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