Top 5 High Growth Stocks with Impressive Order Book for FY25

The Indian economy is taking great strides to position itself as a global economic powerhouse.

Despite global challenges, the Indian economy has demonstrated resilience and grown at a steady rate.

The primary drivers of this growth are government's initiatives to make India a manufacturing hub, and also become an export major across various industries.

Favourable government policies and growing domestic demand coupled with strong capex growth, and an abundance of key raw materials at low cost has enabled India to emerge as primary choice for many companies across the globe.

This has resulted in a high influx of orders across various industries.

Of all the companies that witnessed high order intake, these five companies emerged as frontrunners and secured the most orders for FY25 so far.

#1 KEC International

First on the list is KEC International.

The company is a global infrastructure engineering procurement and construction (EPC) central with a presence in various industries, including power transmission and distribution, railways, civil and urban infrastructure, solar, and oil and gas pipelines.

The company's order book at the end of Q1 FY25 stood at Rs 380 billion (bn), the highest ever for the company.

It recently won orders worth Rs 14 bn for transmission and distribution projects in India and the US, taking the total order intake to Rs 75 bn. This is a 70% growth when compared to last year.

Some of the most notable orders are transmission and distribution orders in India, the Middle East, Australia, and America.

It also secured orders to supply towers in Middle East, and balance of system package for a 625 megawatts peak (MWp).

With the company securing high value orders, the share price of the company also soared by over 30% in the last year.

KEC International has recently ventured into EPC of hospitals, commercial buildings, automatic signalling, converter stations, and logistics, which also helped the company secure large orders.

With a high order book, the revenue visibility of the company has improved significantly indicating strong growth in revenue and profits in the medium term.

KEC International Financials (2018-2023)

	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
Sales (Rs m)	119,654	131,142	137,423	172,817	199,140
Sales Growth (%)		9.6%	4.8%	25.8%	15.2%
EBITDA (Rs m)	13,406	12,689	10,135	9,782	12,150
EBITDA Margin (%)	11.2%	9.7%	7.4%	5.7%	6.1%
Net Profit (Rs m)	5,655	5,527	3,321	1,760	3,470
Net Profit Margin (%)	4.7%	4.2%	2.4%	1.0%	1.7%
Return on Equity (%)	20.2%	16.5%	9.2%	4.7%	8.8%
Return on Capital Employed (%)	40.4%	31.2%	20.2%	19.2%	14.2%

Source: Equitymaster

To know more, check out KEC International's factsheet and latest quarterly results.

#2 Oriental Rail Infrastructure

Second on the list is Oriental Rail Infrastructure.

The company is engaged in manufacturing and supply of several items including recron, seat, berth, and compreg boards for Indian Railways.

In July 2024, it secured an order worth Rs 4.3 bn from Indian Railways to manufacture and supply C wagons.

In the seats and berths segment, it enjoys one of the largest market shares at 30%.

This helped the company secure an order worth Rs 193.3 million (m) to supply seats for different kinds of wagons.

Earlier in March, it secured orders worth Rs 12.5 bn to supply wagons to Indian Railways through its subsidiary Oriental Foundry.

The total orders the company received so far in 2024 is around Rs 17.1 bn. It secured orders worth Rs 6.18 bn from April to December 2023.

A high-order book provides good revenue visibility, which is why the share price soared by over 450% in the last year.

With a high traction of orders, the company is heavily investing in doubling its artificial leather capacity from 2.4 million (m) meters to 4.8 m meters per annum.

Its wholly-owned subsidiary is also expanding its railway wagon capacity by setting up a greenfield plant.

Apart from this, it is planning to expand the capacity of silicon foam blocks which are used as cushioning material.

Oriental Rail Infrastructure Financials (2018-2023)

	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
Sales (Rs m)	2,667	2,202	1,726	3,251	5,260
Sales Growth (%)		-17.4%	-21.6%	88.4%	61.8%
EBITDA (Rs m)	461	336	323	272	670
EBITDA Margin (%)	17.3%	15.3%	18.7%	8.4%	12.7%
Net Profit (Rs m)	243	154	156	32	30
Net Profit Margin (%)	9.1%	7.0%	9.0%	1.0%	0.6%
Return on Equity (%)	32.1%	17.1%	14.9%	3.0%	15.2%
Return on Capital Employed (%)	25.1%	16.0%	12.6%	8.4%	12.7%

Source: Equitymaster

To know more, check out Oriental Rail Infrastructure's factsheet and latest quarterly results.

#3 Hitachi Energy India

Third on the list is Hitachi Energy.

Part of the Hitachi group, the company specialises in serving utility and industry customers with a complete range of engineering products, solutions, and services in areas of power technology.

Hitachi Energy secured orders worth Rs 24.36 bn in Q1 FY25, which is nearly more than twice the amount of orders in the same quarter last financial year.

Some of the key orders in the order book are from the transmission, data centre and renewables industry.

Apart from domestic orders, the export orders which accounted for 27% of the order book, also increased when compared to previous quarters.

Some of the key international orders are to supply HVDC light VSC stations for a company in Australia and upgrade switchgear substations and transmission grids for a Canadian company.

The strong order book has helped the company deliver sustained financial growth, which in turn resulted in multibagger performance of the stock on the bourses.

The company's shares zoomed by nearly 200% in the last year, taking the share price to Rs 11,000 from Rs 3,800.

The company has solid growth plans to leverage its large order book for revenue generation. For this, it plans to shift its focus to export orders.

Moreover, it plans to improve its profits and productivity by focusing on operational excellence.

Going forward, its growth plans and strong order book will drive its revenue and profit growth.

Hitachi Energy Financials (2019-2024)

	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
Sales (Rs m)	32,361	34,204	48,840	44,685	52,375
Sales Growth (%)		5.7%	42.8%	-8.5%	17.2%
EBITDA (Rs m)	3,376	2,865	3,890	2,651	3,683
EBITDA Margin (%)	10.4%	8.4%	8.0%	5.9%	7.0%
Net Profit (Rs m)	1,654	998	2,034	939	1,638
Net Profit Margin (%)	5.1%	2.9%	4.2%	2.1%	3.1%
Return on Equity (%)	19.7%	10.7%	18.0%	7.7%	12.0%
Return on Capital Employed (%)	29.6%	18.6%	29.1%	15.2%	20.5%

Source: Equitymaster

To know more, check out the Hitachi Energy factsheet and the latest quarterly results.

#4 Welspun Corp

Next on the list is Welspun Corp.

The company is one of the largest manufacturers of large-diameter pipes globally.

It also manufactures BIS-certified steel billets, TMT (Thermo-Mechanically Treated) rebars, ductile iron (DI) pipes, stainless steel pipes, and tubes & bars.

The company received orders worth Rs 30 bn in the last five months. This includes orders from Middle East to deliver pipes and bends. It also includes an order from USA worth Rs 20.3 bn, and an order from India worth Rs 8 bn.

The company's total order book in March 2024 was Rs 90.5 bn, which increased to Rs 120 bn in the June 2024 quarter.

In the last year, Welspun Corp's share price zoomed by over 100%.

The company is currently undergoing a major transformation by diversifying into related businesses. For this, it has also set up a greenfield pipes facility and acquired Sintex BAPL.

Going forward, a steady order book will drive the company's revenue and profit growth in the medium term.

Welspun Corp Financials (2018-2023)

	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
Sales (Rs m)	99,568	71,526	65,051	97,581	173,400
Sales Growth (%)		-28.2%	-9.1%	50.0%	77.7%
EBITDA (Rs m)	12,758	11,519	10,229	8,046	15,610
EBITDA Margin (%)	12.8%	16.1%	15.7%	8.2%	9.0%
Net Profit (Rs m)	6,921	8,377	4,442	1,992	11,360
Net Profit Margin (%)	7.0%	11.7%	6.8%	2.0%	6.6%
Return on Equity (%)	21.6%	20.6%	10.1%	4.2%	21.5%
Return on Capital Employed (%)	33.6%	25.3%	13.0%	8.7%	21.6%

Source: Equitymaster

To know more, check out Welspun Corp's financial factsheet and latest quarterly results.

#5 Bharat Electronics

Last on the list is Bharat Electronics.

The company was formed under the Ministry of Defence to handle the electronic needs of Indian defence.

It is a multi-product, multi-technology firm that provides products and systems to India's armed forces.

The company's products include radars, missile systems, tank electronics, and gun upgrades.

At the end of the June 2024 quarter, the company's order book stood at Rs 767 bn, as against Rs 759.3 bn in the March 2024 quarter.

In just one quarter Bharat Electronics secured orders worth Rs 8 bn. Some of the orders it received is to supply and install an indigenously designed and developed sighting and fire control system (FCS) for Rs 3 bn.

It also bagged an order worth Rs 4.8 bn to supply radars, jammers, and spares. Apart from this, it secured an export order worth Rs 2 bn in July 2024.

The high inflow of orders has positively impacted the company's bourse performance. Its shares zoomed by 147% in the last year.

Going forward, the company plans to maintain the order flow momentum through its diversified expansion across various products and services, including lithium-ion batteries, renewable energy, space electronics, railways, metro, network and cyber security.

In the last five years, the company has delivered exceptional results, which can be seen below.

Bharat Electronics Financials (2018-2023)

	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
Sales (Rs m)	129,677	141,087	153,682	177,344	202,680
Sales Growth (%)		8.8%	8.9%	15.4%	14.3%
EBITDA (Rs m)	28,579	33,387	35,759	43,706	53,320
EBITDA Margin (%)	22.0%	23.7%	23.3%	24.6%	26.3%
Net Profit (Rs m)	17,926	20,693	23,545	29,404	42,380
Net Profit Margin (%)	13.8%	14.7%	15.3%	16.6%	20.9%
Return on Equity (%)	17.8%	18.7%	19.2%	21.2%	26.4%
Return on Capital Employed (%)	24.7%	26.7%	25.8%	28.4%	34.8%

Source: Equitymaster

To know more, checkout Bharat Electronics' financial factsheet and latest quarterly results.

Should You Invest in Stocks with High Order Books?

A large order book and consistent inflow of orders is a major green flag for companies.

High order book will translate into revenue and profit for the company over a period of time, which indicates it is a promising investment.

However, it is important to treat stocks with high-order books with the same caution as other stocks, as they are exposed to market fluctuations.

Also, while higher order books is obviously a big plus, it ultimately boils down to the execution capability of the company... and the margin it's able to earn on the orders.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...