Corporations with order books exceeding their market capitalization current an intriguing funding situation. This example happens when a agency’s future contracted income surpasses its present inventory market valuation. It typically signifies potential undervaluation or market skepticism concerning the firm’s capability to execute orders profitably.
This phenomenon is especially frequent in sectors with lengthy undertaking cycles, reminiscent of infrastructure, protection, and heavy engineering. Traders analyzing these firms should take into account elements like execution functionality, revenue margins, and trade dynamics to evaluate whether or not this discrepancy represents a real funding alternative.
Corporations with Order e-book higher than Market capitalization
A number of the firms having order e-book higher than their market cap are listed beneath:
NCC
J Kumar Infra Initiatives
Gr Infra Initiatives
HG Infra Engineering
Ircon
Patel Engineering
Capacit’e Infraprojects Ltd
Skipper Restricted
Firm Overview
NCC Restricted
NCC, a number one infrastructure and building firm in India, has established itself as a key participant within the nation’s improvement panorama. With a various portfolio spanning sectors reminiscent of buildings, roads, water tasks, and energy, NCC has been instrumental in shaping India’s infrastructure for over three many years. NCC Restricted continues to contribute considerably to India’s development story, adapting to new applied sciences and sustainable practices in building.
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Order Ebook: NCC Restricted’s order e-book has proven spectacular development, reaching Rs. 57,536 crore in FY24, a 15% year-on-year enhance once more. Whereas their market cap stands at ₹ 21,328 Cr..The corporate secured new orders value Rs. 27,283 crore in FY24, representing a 5% development from the earlier 12 months.
Notable latest orders embrace three sensible meter tasks valued at Rs. 8,080 crore, marking NCC’s entry into this new section. The corporate additionally gained a major contract for developing a twin tunnel from Goregaon to Mulund in Mumbai, value Rs. 6,335 crore (excluding GST), with NCC’s share being Rs. 3,231 crore.
These new tasks, together with ongoing executions, contribute to NCC’s numerous and strong order e-book throughout numerous infrastructure sectors. Moreover this the corporate’s income and internet revenue have additionally soared from ₹15,553 Cr and ₹646Cr. in 2023 to ₹20,845 Cr. and ₹740 Cr. in 2024 respectively.
J Kumar Infra Initiatives
J. Kumar Infra tasks is a number one infrastructure improvement firm in India, specializing in civil engineering and EPC (Engineering, Procurement, and Building) tasks. With a wealthy legacy spanning over 4 many years, the corporate has established itself as a key participant in city infrastructure improvement. J. Kumar Infra tasks focuses on complicated tasks throughout numerous segments, together with metro techniques, flyovers, bridges, roads, water tasks, and civil building.
Order Ebook: As of March 31, 2024, J. Kumar Infraprojects reported a sturdy order e-book of ₹21,011 crores whereas their market cap is ₹ 6,780 Cr. The corporate secured new orders value ₹11,810 crores throughout FY24, marking its highest-ever annual order influx. Notable latest wins embrace a ₹3,088 crore contract for the Goregaon Mulund Hyperlink Street (GMLR) undertaking in Mumbai, that includes twin tunnels of 4.7 km every, and a ₹3,570 crore undertaking for the Chennai Elevated Hall.
The order e-book is well-diversified throughout metro tasks, elevated corridors, flyovers, roads, and different civil infrastructure works, positioning the corporate for sustained development within the coming years.
G R Infraprojects
G R Infraprojects is a number one built-in EPC (Engineering, Procurement, and Building) firm in India, specializing in street building and infrastructure improvement. With a observe report spanning over 28 years, the corporate has established itself as a key participant within the infrastructure sector. G R Infraprojects focuses on tasks throughout numerous segments, together with highways, bridges, railways, metros, tunnels, and transmission traces.
Order Ebook: As of March 31, 2024, G R Infraprojects reported a sturdy order e-book of ₹2,11,267 million (₹21,126.7 crores), whereas the corporate’s market cap stood at 17,355Cr. The order e-book is well-diversified throughout numerous infrastructure segments, with 78% in street tasks, 9% in hydro tasks, and the rest unfold throughout MMLP, tunnels, transmission, railway & metro, and ropeways. This numerous portfolio, primarily from NHAI (78%), positions the corporate for sustained development throughout 23 states in India.
H.G. Infra Engineering
H.G. Infra Engineering Is a number one infrastructure improvement firm in India, specializing in EPC (Engineering, Procurement, and Building) tasks. With a legacy spanning over 22 years and a market cap of ₹ 11,288 Cr., the corporate has established itself as a key participant in infrastructure improvement. H.G. Infra focuses on tasks throughout numerous segments, together with highways, railways, metros, and solar energy.
Order Ebook: As of March 31, 2024, H.G. Infra Engineering reported a sturdy order e-book of ₹124,340 million (₹12,434 crores). The order e-book is well-diversified throughout totally different infrastructure segments: 68.2% in street tasks, 21.3% in railway and metro tasks, and 10.5% in solar energy tasks.
This numerous portfolio spans 12 Indian states, positioning the corporate for sustained development throughout numerous infrastructure sectors. Notable latest wins embrace a ₹7,600 million contract for the Chennai -Tirupati Package deal-II undertaking and a ₹13,070 million order for solar energy tasks in Rajasthan. The corporate’s strategic growth into railway and photo voltaic sectors marks a major evolution from its conventional give attention to roads.
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Ircon
Ircon Worldwide is a number one Indian engineering and building firm specializing in transportation infrastructure. With over 45 years of expertise and a market cap of ₹ 26,311 Cr. Ircon has established itself as a key participant in railway and freeway tasks each domestically and internationally. The corporate’s experience spans throughout numerous segments together with railways, highways, bridges, tunnels, and metro techniques.
Order Ebook: As of March 31, 2024, Ircon reported a robust order e-book of ₹27,208 crore. The order e-book is diversified throughout key infrastructure segments: 77.8% in railways, 21.9% in highways, and 0.3% in different sectors. Geographically, 90.8% of orders are home whereas 9.2% are worldwide. The corporate has a balanced mixture of competitively bid (49.3%) and nominated (50.7%) tasks, demonstrating its capability to safe work by way of each channels. This strong and numerous order e-book positions Ircon for sustained development throughout numerous infrastructure sectors.
Patel Engineering
Patel Engineering is a number one infrastructure improvement firm in India, specializing in EPC (Engineering, Procurement, and Building) tasks. With a legacy spanning over 70 years, the corporate has established itself as a key participant in infrastructure improvement. Patel Engineering focuses on tasks throughout numerous segments, together with hydropower, tunnels, irrigation, and concrete improvement. The corporate has efficiently accomplished quite a few large-scale tasks each in India and internationally, contributing considerably to the nation’s infrastructure development.
Order Ebook: Patel Engineering, an Indian infrastructure firm, has a sturdy order e-book reflecting its robust market place. As of latest stories, the corporate’s order e-book stands at roughly Rs 18,631 crore, though the corporate’s market cap stands at ₹ 5,826Cr. This features a numerous vary of tasks throughout sectors like hydropower, tunnels, and roads.
The corporate has secured a number of new orders in latest months, boosting its order e-book. Notable amongst these is a Rs 1,275 crore contract for a hydroelectric undertaking in Arunachal Pradesh. Moreover, Patel Engineering gained a Rs 1,251 crore order for the Nekkallu Raise Irrigation undertaking in Andhra Pradesh.
These new contracts underscore the corporate’s experience in complicated infrastructure tasks and its continued development within the sector. The wholesome order e-book offers visibility for future income streams.
Capacit’e Infraprojects
Capacit’e Infraprojects is a number one Indian building firm specializing in high-rise buildings and enormous infrastructure tasks. Based in 2012, the agency has quickly grown to develop into a trusted identify within the trade, with a market cap of ₹ 2,548 Cr. The corporate is thought for its revolutionary methods, high quality execution, and well timed supply. With a various portfolio spanning residential, industrial, and institutional sectors. Capacit’e Infraprojects continues to form India’s city panorama.
Order Ebook: Capacit’e Infraprojects boasts a sturdy order e-book, reflecting its robust market place. As of the newest out there knowledge, the corporate’s order e-book stands at roughly ₹9,000 crore (90 billion rupees). This numerous portfolio contains a number of high-profile tasks throughout India.
Current notable tasks embrace: a ₹4,000 crore dwelling improvement for one of many prime builders in Mumbai. A Bengaluru industrial improvement value ₹1,500 crore. The corporate additionally accomplished a hospital undertaking in Delhi NCR valued at ₹800 crore. It has additionally received orders value 2,000 crore authorities infrastructure tasks in complete.
Skipper
Skipper, established in 1981, is a number one Indian producer specializing in energy transmission and distribution gear, polymer merchandise, and infrastructure options. Identified for high quality and innovation, Skipper produces transmission towers, poles, pipes, and railway electrification buildings.
The corporate serves each home and worldwide markets, contributing considerably to India’s infrastructure improvement. With a robust give attention to technological development and sustainable practices, Skipper continues to broaden its footprint within the international energy and infrastructure sectors.
Order Ebook: Skipper Restricted maintains a sturdy order e-book of roughly ₹6,215 crore, whereas their market cap stands at ₹ 4,235 Cr. showcasing its robust market place in energy transmission and infrastructure sectors. This numerous portfolio contains transmission tower tasks for state electrical energy boards, railway electrification contracts, and polymer pipe orders for water and irrigation tasks throughout India and worldwide markets.
Key latest wins embrace a ₹737 crore order for transmission towers from Energy Grid Company of India, a ₹200 crore railway electrification undertaking in Japanese India, and a ₹150 crore export order for towers from a South American utility. The corporate additionally secured a major ₹300 crore polymer pipe contract for a significant irrigation undertaking in Central India, additional solidifying its place within the infrastructure sector.
Conclusion
As we will see from the above record, all of those firms are within the infrastructure or engineering sectors. The basic trigger for this stems from the federal government’s substantial push to broaden infrastructure within the nation. Moreover, the companies’ aggressive infrastructure growth ambitions have contributed to a bigger order e-book worth than their market capitalization.
Going forward it is going to be attention-grabbing to see how these shares carry out within the coming years. Will the momentum proceed or not, tell us in your feedback?
Written By Dipangshu Kundu
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