Investing in companies with order books that more than their market cap can be an attractive option for investors. This shows that the company has more contracted revenue from future orders than its current market valuation. Such scenarios are often seen in sectors like infrastructure, defense, and heavy engineering.
However, investors should analyze these companies execution capability, profit margins, and industry dynamics. Here are 3 companies whose order books surpass their market cap and should be on investors’ radar.
ITD Cementation India Limited
ITD Cementation India Limited is a leading company in India’s construction and engineering sector, primarily focusing on heavy infrastructure projects.
- Market Cap: ₹8,894 crore
- Share Price: ₹518
- Order Book (September 2024): ₹17,986 crore
- FY24 Revenue: ₹7,718 crore (51.60% growth)
- FY24 Net Profit: ₹274 crore (119.2% growth)
Portfolio Diversification:
- Maritime Structures: 32.4% (₹5,834 crore)
- Urban Infrastructure: 19.7% (₹3,549 crore)
- Industrial Structures & Buildings: 17.2% (₹3,095 crore)
- Highways & Flyovers: 14.2% (₹2,549 crore)
- Hydro & Irrigation: 10.8% (₹1,942 crore)
New Achievements:
In FY25, the company received new orders worth ₹3,850 crore. With clients from government, PSU, and private sectors, ITD Cementation is moving towards a strong future.
Patel Engineering Limited
Founded in 1949, Patel Engineering Limited is a prominent name in civil engineering and construction. The company specializes in hydroelectric projects, dams, tunnels, and urban infrastructure.
- Market Cap: ₹4,316 crore
- Share Price: ₹51.1
- Order Book (September 2024): ₹17,260.7 crore
- FY24 Revenue: ₹4,544 crore (16.78% growth)
- FY24 Net Profit: ₹290 crore (58.47% growth)
Portfolio Diversification:
- Hydroelectric Projects: 63.45% (₹10,951.7 crore)
- Irrigation Projects: 21.21% (₹3,661.2 crore)
- Tunnels: 10.46% (₹1,804.6 crore)
- Roads: 1.78% (₹307.5 crore)
- Others: 3.10% (₹537.5 crore)
With 62.48% of orders from the central government, 34.47% from state governments, and 3.05% from international markets, Patel Engineering has a diverse client base.
KEC International Limited
KEC International Limited is a global leader in the infrastructure sector, specializing in engineering, procurement, and construction (EPC) services. It is part of the RPG Enterprises group.
- Market Cap: ₹26,776 crore
- Share Price: ₹1,006
- Order Book (September 2024): ₹34,088 crore
- FY24 Revenue: ₹19,914 crore (15.23% growth)
- FY24 Net Profit: ₹347 crore (97.16% growth)
Portfolio Diversification:
- T&D (Transmission & Distribution): 55%
- Civil: 27%
- Railways: 11%
- Renewables: 3%
- Cables & Oil & Gas: 2%
With 67% of orders from India and 33% from international markets, KEC International stands as a global player.
Why Focus on These Companies?
Companies with order books larger than their market cap indicate significant growth potential. Their diverse orders and consistent profitability make them suitable for long-term investments.