Top 10 Infra Stocks in India Ranked by Order Book Value

India, with its rapidly growing economy and urban expansion, is undergoing an infrastructure boom like never before.

From the ambitious Bharatmala road network that aims to connect every corner of the country to the high-speed rail corridors that will revolutionise travel, India's infrastructure story is nothing short of epic.

Behind every towering bridge, every mile of road, and every cutting-edge metro project lies the force of companies that are not just building structures but constructing the future of the nation.

In the past, India Inc has seen such expansionary periods and many busts. Which is why investors are rightly focused on the order books and execution capabilities of infra companies.

A strong order book reflects a company's ability to win big-ticket projects, sustain growth in the long term, and most importantly, contribute to the grand narrative of India's development.

In today's article, we'll take a look at the top 10 infra stocks in India ranked by their order book value.

#1 Larsen & Toubro (L&T)

L&T is one of India's largest and most diversified engineering, construction, manufacturing, technology, and financial services conglomerates.

It operates in over 30 countries and is known for executing large-scale projects across multiple sectors, including infrastructure, power, defence, and hydrocarbons.

The company derives 51% of its revenues from the infrastructure sector, 25% revenues from the services segment, 13% from hydro-carbon segment, 7% from defence, and the balance from others.

As of August 2024, L&T's order book stands at approximately Rs 4.9 trillion with a 'T', reflecting a robust pipeline of projects across various sectors.

In July 2024, L&T secured a significant order from the National Highways Authority of India (NHAI) for the construction of a six-lane expressway in Uttar Pradesh.

Another major order includes a contract for the design and construction of an underground metro project in Chennai.

Coming to the financials for FY24, the company reported strong growth in revenues at 20.6%, EBITDA growth of 12.3%, and profit after tax growing at 23.3%.

L&T's diverse portfolio and strong execution capabilities position it well for continued growth. With the government's focus on infrastructure development, L&T is expected to benefit from increased public spending on projects, particularly in transportation, water, and urban development sectors.

For more details, see the L&T company fact sheet and quarterly results.

#2 IRCON International

IRCON International is a leading turnkey construction company in the public sector, specialising in infrastructure projects such as railways, highways, bridges, tunnels, and metro systems.

It has a strong presence both in India and international markets.

As of August 2024, IRCON's order book was valued at approximately Rs 260.4 billion (bn), primarily driven by railway and road infrastructure projects.

In June 2024, IRCON won a contract for the construction of a new railway line in Bangladesh, valued at Rs 19 bn.

Another key order includes a Rs 10 bn contract from the Indian Railways for track electrification.

A strong order book, and rapid development in railways infrastructure has helped Ircon International grow its revenue.

The company is involved in mostly railways and road projects. But it plans to expand its portfolio to include renewable power projects, which can help the company achieve healthy profit margins.

IRCON is poised for growth with its strong focus on railway electrification and infrastructure development. The company is expected to gain from the government's thrust on expanding and modernizing the rail network, along with international opportunities in neighbouring countries.

To know more check out the Ircon International company fact sheet and quarterly results.

#3 Engineers India Ltd.

Engineers India is a premier engineering consultancy and EPC company in India, catering primarily to the oil and gas and petrochemical industries.

It provides a wide range of services, from feasibility studies to project management and commissioning.

As of August 2024, the company's order book stood at around Rs 965.8 bn, with a significant portion coming from the oil and gas sector.

Engineers India secured an order in April 2024 for project management consultancy services for a refinery expansion project in Maharashtra.

Another recent win includes an engineering contract for a petrochemical complex in Gujarat.

Over the years, the company has expanded beyond its core business of oil and gas to petrochemicals, green hydrogen, fertilisers, and biofuels.

Engineers India presents a compelling growth story going forward mainly due to the Indian government's National Infrastructure Pipeline. This plan aims to invest an estimated US$ 1.4 trillion (tn) in India's infrastructure by 2025.

The pipeline includes projects like dedicated freight corridors, high-speed railways, and smart cities. These are all areas within Engineers India's expertise.

To know more, check out the Engineers India company factsheet and quarterly results.

#4 Rail Vikas Nigam Ltd (RVNL)

Rail Vikas Nigam is a public sector enterprise that undertakes the construction and development of rail infrastructure projects in India.

It plays a crucial role in the execution of projects under the Ministry of Railways, including the doubling, gauge conversion, and electrification of tracks.

RVNL's order book is robust, valued at approximately Rs 850 bn, driven primarily by projects from the Indian Railways.

The railway company won a major contract in May 2024 for the construction of a high-speed rail corridor between Mumbai and Ahmedabad.

Another key order includes a project for doubling railway tracks in Karnataka, valued at Rs 15 bn.

To leverage its expert project management skills, the company diversified into other segments such as roads, irrigation, industrial manufacturing, and electrical works over the past and successfully secured orders from these segments as well.

This has helped the company grow its revenue and net profit at a compound annual growth rate (CAGR) of 15% and 15.6%, respectively, in the last five years.

Going forward, it plans to focus on competitive bidding and diversify its revenue to other segments to increase its profit margin in the medium term.

With the Indian government's aggressive push to modernize and expand the railway network, RVNL is well-positioned for strong growth. The company's focus on high-speed rail and electrification projects is expected to drive future revenue.

To learn more, check out Rail Vikas Nigam's financial factsheet and the latest quarterly results.

#5 Dilip Buildcon

Dilip Buildcon is one of India's largest and fastest-growing infrastructure development companies, known for its expertise in road and highway construction.

The company has diversified into other segments, including mining, irrigation, and urban development.

Dilip Buildcon's order book stands at approximately Rs 187 bn, with a strong focus on road and highway projects.

In June 2024, the company secured a Rs 21 bn contract from NHAI for the construction of a four-lane highway in Rajasthan.

Another significant order includes a project for an irrigation system in Madhya Pradesh, valued at Rs 12 bn.

For the most recent June 2024 quarter, the company's profit grew by 103.1% YoY. Additionally, the net sales for the quarter were the highest in the last five quarters.

The company expects an order inflow of Rs 100-120 bn in FY25. It is focused on debt reduction and aims to reduce debt by Rs 5 bn in FY25 compared to Rs 8.6 bn reduced in FY24.

Dilip Buildcon is expected to continue its strong growth trajectory, driven by its ability to execute projects efficiently and its expanding presence in diverse infrastructure segments.

To know more, check out Dilip Buildcon's financial factsheet.

#6 ITD Cementation

ITD Cementation India is a leading construction company engaged in heavy civil engineering works, including marine structures, highways, bridges, flyovers, tunnels, and airports.

The company is a subsidiary of Italian-Thai Development Public Company Limited, Thailand.

ITD Cementation's order book is valued at around Rs 185.4 bn, with a focus on marine and urban infrastructure projects.

The company secured orders worth Rs 70 bn in FY24.

In the order book, the share of the Government, PSU and private sector stood at 49%, 18% and 33% respectively. The company has presence in 13 states, 1 union territory and is also executing projects overseas in SriLanka and Bangladesh.

In May 2024, ITD Cementation secured a Rs 12 bn contract for the construction of a marine terminal in Gujarat. The marine segment typically has better margins.

The company also won a Rs 9 bn order for the construction of a metro station in Mumbai.

In July 2024, the stock of ITD Cementation witnessed a sharp correction in response to an announcement that the promoter entity - Italian Thai Development Public Company Limited, is exploring a potential divestment of its investments in the company.

In one of its concalls, the company's management guided that they're targeting 20% plus growth at revenue level in FY25, with expected order inflow at Rs 80 to Rs 90 bn.

ITD Cementation is expected to grow steadily, leveraging its expertise in specialized infrastructure projects. The company is well-placed to benefit from ongoing investments in ports, urban infrastructure, and metro projects across India.

To know more, check out ITD Cementation factsheet.

#7 J Kumar Infraprojects

J Kumar Infraprojects is a leading infrastructure company in India, specializing in urban infrastructure, including metro rail, flyovers, bridges, and roads.

The company is known for its strong execution capabilities and a solid track record in completing complex projects.

J Kumar Infraprojects' order book stands at approximately Rs 198.2 bn, with a major focus on metro and urban infrastructure projects.

In June 2024, the company secured a Rs 18 bn contract for the construction of a metro line in Pune.

Another recent win includes a Rs 10 bn project for the construction of a flyover in Delhi.

In its earnings call, the company's management has guided for around Rs 60-80 bn new order intake in FY25 and maintain the overall order book of around Rs 200-220 bn.

J Kumar Infra is poised for growth with the increasing demand for urban infrastructure development in India's rapidly growing cities.

It has set ambitious targets for its future growth, aiming to achieve the status of a US$ 1 bn firm by 2027.

To know more about the company, check out its detailed financial factsheet on our website.

#8 Ahluwalia Contracts

Ahluwalia Contracts is a leading construction company, specialising in civil construction projects, including residential, commercial, and institutional buildings.

The company's major clients are central and state governments including PSUs, prestigious business house/real estate developers.

Ahluwalia Contracts' order book was valued at approximately Rs 214.4 bn, primarily driven by building construction projects.

In April 2024, Ahluwalia Contracts won a Rs 7 bn contract for the construction of a commercial complex in Mumbai.

Another key order includes a Rs 5 bn project for a residential development in Bangalore.

The company is also involved in the data centre market. Over the years, it has received orders for building data centres from clients like Adani, Indian Financial Technologies, among others.

The company is expecting order inflow of around Rs 70 bn for FY25.

Coming to financials, for FY24, the company achieved a turnover of Rs 38.6 bn and a net profit of Rs 3.4 bn.

While keeping minimal debt on the balance sheet and requiring minimal capex for growth, the company is sitting on its highest ever orderbook that offers multi-year revenue profitability.

The company's focus on high-quality construction and timely project completion is expected to drive the future growth.

To know more, check out Ahluwalia's financial factsheet.

#9 NCC Ltd.

NCC, formerly known as Nagarjuna Construction Company, is a leading construction and infrastructure company in India.

It operates across various sectors, including buildings and housing, transportation, water and environment, electrical, and irrigation.

NCC's order book stands at around Rs 526.3 bn, diversified across multiple infrastructure segments.

In May 2024, NCC secured a Rs 25 bn contract for the construction of a large housing project in Hyderabad.

Another significant order includes a Rs 18 bn project for road construction in Maharashtra.

The company has set a strong guidance for order booking, in the range of Rs 200-220 bn for FY25.

Coming to financials, for the most recent quarter, NCC reported a turnover of Rs 47.5 bn, a 23% increase year-on-year. While its net profit grew by 24% YoY.

During the quarter, its debt increased by Rs 8.1 bn primarily due to the construction industry's seasonal cash flow pattern and delays in payment due to elections.

The company has a strong pipeline of orders waiting for Letters of Award (LOA).

NCC is expected to maintain steady growth, driven by its diversified order book and expertise across various infrastructure sectors.

To know more, check out NCC's financial factsheet.

#10 IRB Infrastructure Developers

Last on this list is IRB Infra.

IRB Infrastructure Developers is one of India's largest private developers in the road and highway sector.

The company is engaged in the development, operation, and maintenance of roads and highways across the country, primarily under the BOT (Build-Operate-Transfer) model.

The company derives 70% of its revenue from construction and development and balance 30% of revenues from BOT segment.

IRB Infrastructure's order book is valued at approximately Rs 348 bn, with a strong focus on toll-based road projects.

In June 2024, IRB won a Rs 15 bn contract from NHAI for the development of a new expressway in Gujarat.

The company also secured a Rs 12 bn project for the expansion of a highway in Maharashtra.

Coming to the financials for FY24, IRB Infra reported a robust growth in revenues at 15.7%, EBITDA growth of 16.8%, and profit after tax grew at 11.3%.

IRB Infrastructure is well-positioned for growth due to its expertise in the BOT model and its expanding portfolio of toll-based projects.

To know more, check out IRB Infra's financial factsheet.

Conclusion

As India races towards becoming a US$5 trillion economy, the infrastructure sector will undoubtedly play a pivotal role in this transformation.

With strong order books, strategic project wins, and a clear growth trajectory, the infra giants mentioned above are well-positioned to capitalize on the opportunities that lie ahead.

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