Investing based on a company’s order book helps identify firms with strong growth potential. The order book reflects unfulfilled contracts, serving as a future revenue indicator. A high order book/TTM revenue ratio suggests substantial growth, but execution efficiency and profitability are key. Investors should also consider management’s revenue and margin guidance to assess whether future growth translates into actual earnings. This approach is especially useful in sectors like infrastructure, defense, and capital goods, where large contracts dominate. However, order book analysis should be combined with other financial metrics for a well-rounded investment decision.
Here are 10 listed companies in the Indian stock market with huge order books and you can find more stocks with great order book at Sovrenn Discovery.
- Transformers and Rectifiers (TRIL): TRIL engages in infrastructure development, focusing on sectors such as power, transportation, and energy. It has a TTM revenue of ₹1,666 crore as of September 2024. With an order book of ₹3,500 crore, the order book/TTM revenue ratio stands at 2.10x. The company’s chairman anticipates reaching US$ 1 billion (₹8,397 crore) in revenue over the next three financial years.
- VA Tech Wabag: VA Tech Wabag specializes in water and wastewater treatment solutions, providing sustainable infrastructure projects globally. With a TTM revenue of ₹2,930 crore and an order book of ₹10,700 crore as of June 2024, the company targets revenue growth of 15% to 20% CAGR, with EBITDA expected to be in the 13% to 15% range.
- Concord Control Systems: Concord Control System is engaged in providing control systems and automation solutions across various industries. As of June 2024, the company has a TTM revenue of ₹65 crore and an order book of ₹197 crore. The management is aiming for 40-50% growth in FY25 and at a CAGR level over the next 3-5 years, maintaining an EBITDA margin between 23-25%.
- RBM Infracon (Infrastructure): RBM Infracon focuses on infrastructure development, particularly in civil construction and road projects. As of June 2024, the company had a TTM revenue of ₹150 crore and an order book of ₹4,898 crore, yielding an order book/TTM revenue ratio of 32.6x. Management is optimistic, projecting a CAGR of 65-67% in revenue for FY24-26, with operating margins expected to grow by 13-15%. This growth is driven by increasing demand for infrastructure projects in India.
- GPT Infraprojects: GPT Infra operates in infrastructure development, particularly in civil construction, with a focus on railways, bridges, and roads. The company has a TTM revenue of ₹1,024 crore and an order book of ₹3,669 crore as of June 2024. The company expects to maintain revenue growth of 20%-25% for the next three years.
- HPL Electric: HPL Electric manufactures a wide range of electrical products, including smart meters, lighting, switchgear, and cables. As of June 2024, the company reported a TTM revenue of ₹1,533 crore and an order book of ₹3,700 crore. The company anticipates 20-25% revenue growth over the next 3-4 years, expecting revenue to reach ₹1,800 crore or higher in FY25. EBITDA margins for smart meters are expected to be sustainable in the range of 15-16%.
- Bondada Engineering: Bondada had a TTM revenue of ₹801 crore and an order book of ₹3,500 crore as of August 2024, yielding an order book/TTM revenue ratio of 4.37x. The company aims to double its revenue and profit in FY25, with guidance of reaching ₹4,000 crore in revenue by FY27 and a PAT of ₹330-340 crore.
- ITD Cementation: ITD Cementation India is a leading engineering and construction company involved in marine structures, urban infrastructure, and hydroelectric projects. The company has a TTM revenue of ₹8,267 crore and an order book of ₹18,536 crore as of June 2024, driving steady revenue growth through high-value contracts.
- Power Mech Projects: Power Mech provides construction services for power plants, including mechanical, electrical, and civil works. As of June 2024, the company had a TTM revenue of ₹4,349 crore and an order book of ₹57,085 crore, yielding an order book/TTM revenue ratio of 13.1x. Management expects revenue growth of 30% for FY25, targeting ₹5,500 crore in revenue, with plans to achieve ₹7,000 crore by FY26, driven by India’s growing energy needs.
- Power and Instrumentation (Gujarat): Power and Instrumentation Ltd. provides electrical engineering and EPC services for industrial and power infrastructure. The company, with a TTM revenue of ₹102 crore and an order book of ₹400 crore as of June 2024, anticipates strong year-on-year growth, leveraging increasing infrastructure demand. The company anticipates a 50% year-on-year revenue growth.
You can find more companies involved in capacity expansion, issuing revenue guidance, and undertaking preferential issuances at Sovrenn Discovery
Capacity Expansion: Invest in companies expanding capacity, poised to capture rising demand and drive long-term growth.
Revenue Guidance: Back companies providing strong revenue guidance, signalling confidence in their future performance.
Preferential Issuance: Seize opportunities with firms offering preferential issuance, unlocking strategic growth and shareholder value.
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