Stocks with an order book of more than 20,000Cr to keep on your Radar in 2024 Trade Brains Trade Brains

In the dynamic landscape of India’s infrastructure and engineering sector, five titans stand tall: Larsen & Toubro (L&T), Hindustan Aeronautics Limited (HAL), NBCC, Rail Vikas Nigam Limited (RVNL), and Bharat Heavy Electricals Limited (BHEL). These powerhouses are shaping the nation’s future through diverse projects spanning construction, aerospace, railways, and power generation. 

This article delves into their business segments, financial performances, order books, and recent milestones, offering a comprehensive view of their market positions and growth trajectories.

List Of Stocks With Order Book More than 20,000cr

Larsen & Toubro (L&T)

Larsen & Toubro(L&T), founded in 1946 by Søren Kristian Toubro and Henning Holck-Larsen, is a renowned multinational conglomerate. The company has established itself as a leader in engineering, procurement, and construction (EPC) solutions across diverse sectors. L&T’s expertise spans infrastructure, hydrocarbon, power, process industries, and defense. Additionally, the company has expanded its portfolio to include information technology and financial services.

The company deals with segments such as infrastructure, hydrocarbons, power, defence, and heavy engineering, with infra and hydrocarbon making up almost 70% of the company’s revenues. There are other segments such as realty, manufacture, sale, marketing of industrial valves, construction equipment, rubber processing, etc. Moreover, it has presence in the mining and aviation sectors.

The company’s financial performance in FY’24 shows robust growth. Revenues reached Rs 221,113 crore, marking a 20% year-over-year increase. The company’s PAT rose to Rs 15,547 crore, reflecting a 24% YoY growth. Additionally, S&P and Fitch have assigned BBB+ ratings to L&T. This outlines companies good credit quality and financial health. Company’s TTM ROE for Q1 FY’25 increased to 14.7% from 12.8% in Q1 FY’24, showcasing enhanced profitability and return on shareholder investments. Overall, these figures demonstrate the company’s strong financial health and growth trajectory.

Order Book

As of Q1FY25, the company’s order book stood at Rs 4,91,000 crore, representing a 19% increase from Q1FY24 Domestic orders comprise 62% of the book, while international clients account for 38%. Of the international portion, 92% comes from the Middle East, totalling around Rs 1,86,000 crore. Central and state governments contribute 42% of the domestic order book.

The company registered Rs 70,900 crore in new orders for the quarter, marking an 8% year-over-year growth, with Rs 54,400 crore from projects and manufacturing. Furthermore, L&T Finance has achieved a 95% retailization as of June 2024 of its loan book. In Q1 FY25 retail book and retail disbursements, the firm has shown a growth of 31% and 33% , respectively.

Hindustan Aeronautics

Hindustan Aeronautics(HAL), established in 1940, is a prominent Indian public sector aerospace and defence company headquartered in Bangalore. As one of the world’s oldest and largest aerospace manufacturers, HAL develops, designs, and produces aircraft, helicopters, avionics, and communications equipment for both military and civil markets.

The company serves various Indian defence forces, government organisations, and international clients like Boeing and Airbus. HAL’s core business revolves around the manufacture, repair, and maintenance of aircraft and helicopters, positioning it as a key player in India’s aerospace industry.

HAL operates through three main business segments. Firstly, the Repair and Overhaul (MRO) segment, which contributes approximately 64% of total revenues, focuses on aircraft maintenance and system servicing. Secondly, the manufacturing segment, accounting for around 30% of revenues, involves the production of various aircraft, helicopters, and engines. Lastly, the Others segment, comprising the remaining 6%, encompasses additional services and products.

HAL’s financial performance for FY’24 demonstrates robust growth and operational efficiency. The company achieved its double-digit growth target a year earlier than expected, with a 13% increase in revenue. Notably, profit has risen to 7,595 crores, up from 5,811 crores from the previous year. HAL has significantly improved its cost structure, reducing manpower costs from 23% to 17% of sales over the past five years, with a target of 16%.

Order Book

HAL’s order book reached 94,000 crores in FY’24, marking a 14.63% year-on-year increase. The company aims to achieve a 1,20,000 crore order book for FY ’24-25, showcasing strong growth prospects. HAL demonstrated its efficiency by delivering two Dornier aircraft to Guyana within ten days of contract execution and supplying six helicopters to the Indian Army before FY’24 ends.

The company also delivered 15 RD-33 engines to the Indian Air Force within a month of signing. A new helicopter facility was launched in Tumakuru, Karnataka. HAL expects to materialize orders worth 47,000 crores in the next year and has committed to a CAPEX of 14,000-15,000 crores over the next 5 years, averaging 3,000 crores annually.

NBCC

NBCC(India) Limited established in 1960, a Navratna Enterprise under the Ministry of Housing and Urban Affairs, is a leading government construction company. It operates in three major segments: Project Management Consultancy, Engineering Procurement & Construction, and Real Estate.

NBCC has a strong presence in civil construction projects, including residential and commercial complexes, hospitals, and educational institutions. The company has expanded its operations internationally, with ongoing projects in Dubai, Maldives, Mauritius, and Seychelles.

NBCC’s operations are divided into three primary segments. Project Management Consultancy (PMC) dominates the revenue stream, contributing 92% of the total. This segment focusses on civil construction projects and redevelopment initiatives. The Engineering Procurement & Construction (EPC) segment, accounting for 6% of revenue, handles specialised projects like chimneys and cooling towers. Lastly, the Real Estate Development segment, contributing 2% of revenue, encompasses residential and commercial projects.

The company achieved an all-time high consolidated revenue of ₹10,433 crores, representing an 18% year-over-year increase. Profitability saw a substantial boost, with Profit Before Tax (PBT) jumping to ₹559 crores, a 50% increase on a consolidated level. Furthermore, NBCC secured record new business worth ₹23,500 crores, a remarkable 250% increase from the previous year. The Amrapali Project significantly contributed to top-line growth, adding around ₹1,800 crores.

Order Book

NBCC’s order book demonstrates robust growth, securing new business worth ₹23,500 crores in FY ’23-’24, a 250% increase. The company anticipates an order inflow of around ₹25,000 crores for the upcoming year. NBCC successfully sold balance inventory in the World Trade Centre in New Delhi for ₹6,480 crore and completed 20,000 units in the Amrapali Project.

The company submitted tenders for additional FAR projects in Amrapali worth ₹4,000 crores. NBCC achieved 65% completion of the first phase of the Netaji Nagar redevelopment project and continues work on the Sarojini Nagar redevelopment. The company is in discussions with the Army for a 100-acre land parcel in Delhi and is pursuing a BHEL order for redevelopment and land monetisation, potentially worth ₹10,000-15,000 crores. This strong order book provides visibility for future revenue growth and reinforces NBCC’s position as a leading player in the construction sector.

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RVNL

Rail Vikas Nigam Ltd(RVNL), incorporated in 2003 by the Government of India, is a prominent player in rail infrastructure development. The company implements various projects assigned by the Ministry of Railways, including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, and production units.

Additionally, RVNL shares freight revenue with railways as per concession agreements. With a history spanning 21 years, RVNL has achieved Navratna status, reflecting its significant growth and performance. The company has expanded its reach beyond domestic projects, securing its first overseas project in the Maldives through bidding.

RVNL’s business segments are primarily divided into three categories based on revenue share for FY23. Firstly, non-Metro projects for the Ministry of Railways constitute the largest segment at 83%. Secondly, Metro projects account for 9% of the revenue share, showing growth from 4% in FY20. Lastly, Zonal Railways Projects contribute 8% to the revenue. This diversification in project types allows RVNL to leverage its expertise across various aspects of rail infrastructure development, ensuring a balanced portfolio and sustained growth.

The company’s turnover surged from INR 2,492 crores in FY13-14 to an impressive INR 21,732 crores in FY23-24. Concurrently, the bottom line experienced substantial growth, rising from INR 162 crores to INR 1,463 crores during the same period. Moreover, project expenditure saw a significant increase, reaching INR 1,55,000 crores in FY23-24 from INR 15,600 crores in FY13-14.

RVNL’s focus on bottom line growth is evident from the 15.38% increase achieved in FY23-24. These figures reflect the company’s strong financial performance and its ability to effectively manage and execute large-scale projects while maintaining profitability.

Order Book

RVNL’s order book stands at INR 83,221 crores, with an aspirational target of INR 75,000 crores to INR 1 lakh crores. The company completed 12 projects in FY23-24, bringing the total to 152 projects, and commissioned a record 243 kilometres of railway projects in March 2024.

RVNL participated in 142 bids in FY23-24 and expanded internationally, submitting bids in countries like Bangladesh, Sri Lanka, and UAE. The company expects an order inflow of INR 20,000 to INR 25,000 crores in FY24-25, aiming to maintain the order book at three to four times its annual turnover.

BHEL

Bharat Heavy Electricals Ltd(BHEL) established in 1956 stands as India’s flagship engineering and manufacturing company, owned and controlled by the government. It specialises in designing, engineering, manufacturing, and servicing a wide range of products for core economic sectors. BHEL’s expertise spans power, transmission, industry, transportation, renewable energy, oil & gas, and defence. As an integrated power plant equipment manufacturer, the company plays a crucial role in India’s infrastructure development. 

BHEL operates through two primary business segments. The power sector, contributing 79% of revenue in Q1 FY25, encompasses thermal, gas, hydro, and nuclear power plant businesses. It also includes spares & services, coal to chemicals, emission control equipment, and spares for non-BHEL sets.

The industry sector, accounting for 21% of revenue, caters to equipment supplies, and EPC works for diverse industries. These include transportation, transmission, defence, aerospace, captive power plants, process industries, renewables, downstream oil & gas, and energy storage.

BHEL’s financial landscape has seen significant changes in recent years. Notably, the company’s debt burden increased substantially, rising from Rs 5,080 crore in FY20 to Rs 8,856 crore in FY24. This surge in debt is attributed to a lack of cash generation during the four-year period from FY20 to FY24.

Despite these challenges, BHEL has maintained a strong market presence and continues to secure major projects. For FY25, the company has set ambitious targets, projecting a revenue growth of 15% and an EBITDA margin between 23% and 25%. These projections reflect the company’s confidence in its ability to navigate current financial challenges and drive future growth.

Order Book

BHEL’s order book grew to Rs 1,33,549 crore as of FY24, with the power sector dominating at 75%. The company secured major orders, including the 2×800 MW Raipur Phase-II power project from Adani Power and the 2×800 MW Mirzapur Phase I power project in Uttar Pradesh.

BHEL signed a technology licensing agreement with Bhabha Atomic Research Centre for a 50 kW alkaline electrolyser system. The company management has set a minimum order inflow target of Rs 25,000 crore, reinforcing its strong position in the power and industry sectors.

As India’s infrastructure needs continue to evolve, these five companies are well-positioned to drive innovation and growth across various sectors. Their robust order books, strategic expansions, and focus on operational efficiency demonstrate their resilience and adaptability.

While challenges persist, particularly in terms of financial management and market competition, these industry leaders are poised to play pivotal roles in India’s development story. Their performances in the coming years will likely shape not only their individual trajectories but also the broader landscape of India’s infrastructure and engineering sectors.

Which of these five companies do you believe has the strongest growth potential, and why? Have you invested in any of these companies? If so, what factors influenced your decision? Let us know in the comments.

Written by Fazal Ul Vahab

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The post Stocks with an order book of more than 20,000Cr to keep on your Radar in 2024 appeared first on Trade Brains.

In the dynamic landscape of India’s infrastructure and engineering sector, five titans stand tall: Larsen & Toubro (L&T), Hindustan Aeronautics Limited (HAL), NBCC, Rail Vikas Nigam Limited (RVNL), and Bharat Heavy Electricals Limited (BHEL). These powerhouses are shaping the nation’s future through diverse projects spanning construction, aerospace, railways, and power generation.  This article delves into
The post Stocks with an order book of more than 20,000Cr to keep on your Radar in 2024 appeared first on Trade Brains.   Read MoreCase Study, Market, Stock Analysis, BHEL share price target, hindustan aeronautics share, L&T, larsen and toubro share price, nbcc india limited, nbcc share price, rvnl financials, rvnl future plans, stock market Trade Brains