Synopsis: Three infra stocks: Patel Engineering, Ashoka Buildcon and RPP Infra, trade below 10x P/E, down 42–50% YoY, offering discounted long-term opportunities despite weak Q2FY26 performance in the sector.
Infrastructure stocks trading at a discount to the broader market are quietly opening up attractive opportunities for discerning investors. These companies often operate in essential, demand-driven segments with strong long-term growth visibility, closely linked to economic revival and sustained infrastructure spending.
These companies’ low price-to-earnings multiples indicate that the market may be underestimating their potential, creating favourable entry points for investors willing to take a long-term, strategic view.
Patel Engineering Limited (PEL), founded in 1949, is a 76-year-old construction company with a strong focus on hydropower and irrigation projects. The company undertakes dams, tunnels, bridges, roads and heavy civil works, with deep expertise in technology-intensive infrastructure such as water supply, urban infrastructure and transportation, particularly underground and tunnelling projects.
Financial highlights: revenue from operations grew by 2.8 percent to Rs 1,208 crore in Q2 FY26, corresponding to the same quarter in the last financial year. Net profit stayed flat YoY at Rs 34 crore in Q2 FY26.
The stock closed at Rs 27.43, trading at a P/E multiple of 6.7x and registering a uptake of 3.16 percent for the day. It is down about 42.6 percent over the last year and has a market capitalisation of approximately Rs 2,721 crore.
Ashoka Buildcon Limitedis a Fortune India 500 company and one of the leading highway developers in India. The company is an integrated EPC, BOT and HAM player. The Company has experience of more than 50 years in the field of construction and infrastructure development. The Company has executed 41 PPP Projects and has a presence in over 20 states in the country. The Company has constructed various prestigious projects across the country in the roads and highways sectors.
Financial highlights: revenue from operations declined by 25 percent to Rs 1,851 crore in Q2 FY26, corresponding to the same quarter in the last financial year. Net profit declined 80 percent by YoY at Rs 91 crore in Q2 FY26.
The stock closed at Rs 147.5, trading at a P/E multiple of 2.8x and registering a decline of 2.22 percent for the day. It is down about 47 percent over the last year and has a market capitalisation of approximately Rs 4,140 crore.
RPP Infra Projects Limited, incorporated in 1995, is engaged in construction across multiple infrastructure verticals, becoming an integrated EPC Company with a portfolio across sectors including Infrastructure Development, Residential and Commercial Buildings, and Water Management. It has executed 200+ civil construction projects across South India, Maharashtra, MP, UP, Chhattisgarh, etc.
Financial highlights: revenue from operations declined by 19.5 percent to Rs 317 crore in Q2 FY26, corresponding to the same quarter in the last financial year. Net profit declined 26.3 percent by YoY at Rs 14 crore in Q2 FY26.
The stock closed at Rs 90.45, trading at a P/E multiple of 8.11x and registering a decline of 0.11 percent for the day. It is down about 50 percent over the last year and has a market capitalisation of approximately Rs 448 crore.
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