These 4 infra companies with healthy RoEs surge up to 170% in 3 years. Do you own any?

The infrastructure and road companies are likely to see good order flow in the second half of the financial year as compared to the first half, said Axis Securities in a research report. In the current quarter, the companies' EBIDTA margins are likely to be impacted due to higher costs of commodities such as steel, cement, and diesel. However, going ahead, the softening in commodity prices is expected and that may shore up margins moving forward. The research firm expects infra companies under its coverage to see a 10 per cent revenue growth in Q2FY23. From the coverage list, two stocks, which are its preferred picks, H.G. Infra Engineering and KNR Constructions have turned multibaggers in the last three-year period.

In the last three fiscal years, most of these companies have been able to post a Return on Equity (ROE) of over 15 per cent. The higher the ROE, the better a company is at converting its equity financing into profits. Take a look:

CMP: Rs 583 | 52-Week High: Rs 830.80
Here are the key strong points of the stock according to Trendlyne.com SWOT analysis.
- Efficient in managing Assets to generate Profits - ROA improving since last 2 year
- Growth in net profit with increasing profit margin (QoQ)
- Increasing revenue and profit every quarter for the past 3 quarters
- Annual net profits improving for last 2 years
- Book value per share improving for last 2 years
- Company with zero promoter pledge

CMP: Rs 232 | 52-Week High: Rs 329.80
This stock has more weaknesses than strengths. Here are the key weaknesses of the stock according to Trendlyne.com SWOT analysis.
- Decline in quarterly net profit with falling profit margin (YoY)
- Low Piotroski Score: Companies with weak financials
- Declining net cash flow: Companies not able to generate net cash
- Weak Momentum: Price below short, medium and long term averages
- High promoter stock pledges
- Highest increase in pledges by promoters

CMP: Rs 429 | 52-Week High: Rs 550
This stock has more weaknesses than strengths. Here are the key weaknesses of the stock according to Trendlyne.com SWOT analysis.
- Decline in quarterly net profit with falling profit margin (YoY)
- Low Piotroski Score: Companies with weak financials
- Declining net cash flow: Companies not able to generate net cash
- Annual net profit declining for last 2 years
- Major fall in TTM net profit
- MACD crossed below signal line previous end of day

CMP: Rs 269 | 52-Week High: Rs 395.90
Here are the key strong points of the stock according to Trendlyne.com SWOT analysis.
- Consistent highest return stocks over five years
- Company with high TTM EPS growth
- Growth in quarterly net profit with increasing profit margin (YoY)
- Book value per share improving for last 2 years
- Company with zero promoter pledge
- FII/FPI or institutions increasing their shareholding

​In the last three fiscal years, most of these companies have been able to post a Return on Equity of over 15 per cent. However, these are highly leveraged companies and their interest covers ratio is below 5x.