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 books at Sovrenn.
1. 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 ₹4898 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.
2. H.G. Infra Engineering (Infrastructure): HG Infra is a key player in road construction, highways, and bridges, actively involved in large-scale infrastructure projects. As of June 2024, HG Infra had a TTM revenue of ₹5555 crore and an order book of ₹15642 crore, representing a 2.8x order book/TTM revenue ratio. The company has provided guidance of 17-18% revenue growth with margins between 15-16%, supported by a strong project pipeline and execution capabilities.
3. Genus Power Infrastructures (Capital Goods): Genus Power specializes in smart metering solutions, manufacturing electrical and smart meters for utilities and energy firms. As of June 2024, the company recorded a TTM revenue of ₹1353 crore with an impressive order book of ₹21458 crore, reflecting a ratio of 15.9x. Management has set an ambitious target of ₹2500 crore in revenue for FY25, with EBITDA margins of 15-16%. Genus Power is well-positioned to benefit from India’s transition to smart energy infrastructure.
4. Power Mech Projects (Capital Goods): Powemech provides construction services for power plants, including mechanical, electrical, and civil works. As of June 2024, the company had a TTM revenue of ₹4349 crore and an order book of ₹57085 crore, yielding an order book/TTM revenue ratio of 13.1x. Management expects revenue growth of 30% for FY25, targeting ₹5500 crore in revenue, with plans to achieve ₹7000 crore by FY26, driven by India’s growing energy needs.
5. Bondada Engineering (EPC Players): Bondada operates in the EPC space, primarily in renewable energy and telecom sectors. The company had a TTM revenue of ₹801 crore and an order book of ₹3500 crore as of August 2024, representing a 4.4x order book/TTM revenue ratio. Management expects to double both revenue and profits by FY25, aiming for ₹4000 crore in revenue by FY27, reflecting strong demand for renewable energy and telecom infrastructure.
6. Gensol Engineering (EPC Players): Gensol provides EPC services for solar energy projects, catering to India’s renewable energy needs. As of September 2024, the company’s TTM revenue stood at ₹1114 crore, with an order book of ₹9055 crore, resulting in an order book/TTM revenue ratio of 8.1x. Management targets ₹2000 crore in revenue for FY25, a 2.1x increase from FY24, with consolidated EBITDA margins expected to remain strong at 25-26%.
7. Garden Reach Shipbuilders & Engineers (Defense): Garden Reach Shipbuilders & Engineers is one of India’s premier shipbuilding companies, catering to the Indian Navy and Coast Guard. As of June 2024, the company had a TTM revenue of ₹3846 crore and an order book of ₹25231 crore, equating to a 6.6x order book/TTM revenue ratio. Management aims for 25-30% growth over the next two years, with PAT margins targeted at 7.5-8%, benefiting from naval defense modernization.
8. Zentech (Defense): Zentech specializes in defense electronics and radar systems, contributing to India’s defense modernization efforts. As of June 2024, the company had a TTM revenue of ₹562 crore and an order book of ₹1158 crore, with an order book/TTM revenue ratio of 2.1x. The company expects to achieve a turnover of ₹900 crore in the current fiscal year, reflecting confidence in strong order execution.
9. Jupiter Wagons (Railways): Jupiter Wagons is a leading manufacturer of railway wagons and components, playing a significant role in India’s railway infrastructure development. As of June 2024, the company had a TTM revenue of ₹3783 crore and an order book of ₹7028 crore, yielding an order book/TTM revenue ratio of 1.9x. The company aims to sell more than 10,000 wagons in FY24, driven by increasing demand for rail infrastructure.
10. Cosmic CRF (Railways): Cosmic CRF manufactures railway track fittings and components for Indian Railways and private clients. As of March 2024, the company had a TTM revenue of ₹253 crore and an order book of ₹504 crore, giving it an order book/TTM revenue ratio of 2.0x. Management expects to double its revenue year-on-year by FY25, with a strong order pipeline.
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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