A robust order book provides a possible potential for future revenue streams. It reflects the contracts and projects that the company has secured, which can translate into predictable cash flows over time.
A large order book often suggests that the company is well-positioned for growth. It indicates the company’s ability to win significant contracts, which can lead to increased market share and expansion opportunities.
Following are two stocks that have an order book of up to Rs. 75,000 crores as of October 2024:
Kaynes Technology India Limited
With a market cap of Rs. 33,420 crores, the shares of a global leader in electronic system design and manufacturing solutions down by nearly 0.30 percent on BSE to hit an intraday high at Rs. 5,316 in today’s trading session.
The order book of Kaynes Technology grew from Rs. 5,038.6 crores in Q1 FY25 to Rs. 5,422.8 crores in Q2 FY25.
For FY24-25, Kaynes Technology expects to clock a similar rate of growth in revenue greater than 60 percent and an improvement in operational EBITDA margin of over 100 basis points.
In Q2 FY25, the company’s consolidated revenue from operations reached Rs. 572 crores, rising by nearly 58.4 percent YoY, while the net profit grew by around 87.5 percent YoY to Rs. 60 crores.
The stock has delivered multibagger returns of nearly 121.6 percent in the last one year, while around 97.4 percent of positive returns year-to-date.
Kaynes Technology India Limited is primarily engaged in the business of design and manufacturing of advanced electronic modules and solutions catering to a wide range of industries.
The company offers solutions for Box Build, Printed Circuit Board Assemblies (PCBAs), ODM, Product Engineering, loT Solutions, smart metering technology, smart street lighting, and inverter technology. It also offers conceptual design and product engineering services.
Bharat Electronics Limited
With a market cap of Rs. 2.08 lakh crores, the shares of this Navratna Defence Public Sector Undertaking (PSU) down by nearly 1 percent on BSE to hit an intraday high at Rs. 288.2 in today’s trading session.
As of October 2024, BEL has an order book position reached at nearly Rs. 75,000 crores, with approximately Rs. 8,475 crores attributed to its non-defence orders.
The management is confident in achieving its goal of overall revenue growth of 15 percent, with EBITDA margins of 22-25 percent, and further anticipates a minimum order inflow of Rs. 25,000 crores.
Additionally, R&D investments have been increased to over Rs. 1,300 crores, and capital expenditure (capex) is expected to exceed Rs. 700 crores.
In Q2 FY25, the company’s consolidated revenue from operations reached Rs. 4,605 crores, rising by nearly 14.8 percent YoY, while the net profit grew by around 38.4 percent YoY to Rs. 1,093 crores.
The stock has delivered multibagger returns of nearly 118.6 percent in the last one year, while around 55.8 percent of positive returns year-to-date.
Bharat Electronics Limited (BEL) is primarily engaged in the business of manufacturing and supply of electronic equipment and systems for the defence and civilian segments.
Written by Shivani Singh
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