The infrastructure space is still looking pretty strong at least for the next 4-5 years. India is an emerging nation and so a lot of infrastructure space related projects are ongoing as of now and will be completed by 2012/2015. These infrastructure companies have huge pending orders which are bound to complete some day and the profits from those orders will reflect their balance sheets. Sooner or later the growth factor will be seen by the market and huge buying will emerge in these stocks.

Out of the infrastructure space, I’ve picked Punj Lloyd and JP Associates for a long term investment. They are an excellent buy at current levels but only from a long term view. Both of the stocks have bottomed out so much that further downside is very much limited. Any strong good news inflow in any of the stocks will drive the stock like anything from current oversold levels.

Punj Lloyd – Punj Lloyd has been beaten down from the levels of 290 to 100. That’s some tough over selling there. At these levels, Punj Lloyd is an excellent purchase from a long term view. The reason of constant selling pressure on the stock is because of bad quarterly results. Punj Lloyd is facing execution delays as of now due to which their several orders are incomplete and thus a crappy result is announced every quarter. However it is estimated that in 2011, several of their projects will get completed and once these orders finish completion, their balance sheets will improve drastically. Punj Lloyd is an 8000 crore company and it is not going to die. The stock is so much over sold that any good result will drive the stock  giving hefty returns. My suggestion is to accumulate the stock at current levels and sleep, this stock will definitely give you huge returns in the future. All you have to do is to trust the company and give it some time to get things in order. We expect levels of 300+ by 2012 which is a very very good return for all of those who buy at 100 levels.

JP Associates – This is another stock from the infrastructure space that has been unnecessarily beaten down. Unlike Punj Lloyd the results of the company have been good but yet it has broken down unnecessarily. This stock is also a very good buy at current levels. Cement prices have picked up and will reflect in their balance sheets from coming quarter. Good results will drive the stock up. JP Associates is oversold and so any inflow of good news shall take the stock to new highs. We expect the stock to touch 250-300 by 2012, which again is a very good return if you buy at current levels. JP Associates has really good fundamentals, so all you have to do is to purchase now and sleep tight, give it time.

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