Tuesday, May 30, 2006
Fuelled by investments to the tune of US$ 308 billion in the infrastructure sector over the next 6 years, shares of companies in the sector could offer returns of 300 per cent by 2010 to investors, a report by financial services firm Edelweiss said.
The next wave of revolution in the country, 'grey revolution' would see an investment of Rs 14 lakh crore and companies in the sector would see a 2.7-fold growth in profits. Also, the combined market capitalisation of these companies would triple to $190 billion from the current $64 billion, the Edelweiss Infrastructure Report said.
"The need for infrastructure is more than an opportunity than a risk for the growing economy of our country. Infrastructure is now a national priority. The blueprints are in place and it is ready to take off. This is going to be a long story," Rashesh Shah, MD and CEO, Edelweiss said.
Edelweiss expects 87% of the investments to come from household and corporate savings and the balance from foreign direct investments. The infrastruture report is aimed at bringing out companies beyond the obvious beneficieries of this infrastructure boom.