PSU ENGINEERING COMPANY WITH ORDER BOOK OF MORE THAN Rs 1-LAKH CRORE EXPECTED TO BECOME THE NEXT L&T

which was one considered an infrastructure developer for Indian Railways is now rapidly transforming into a full-scale engineering company. It's order book has crossed Rs 1 lakh crore which is nearly four times its revenue, and it's ambitions now stretch across railways, metros, highways, ports and telecom fibre. The company is following L&T’s path, but it is doing it on fast-forward speed. However, the company's stock price has already been a multibagger. At around 60x trailing earnings and 7.5x book value, the stock is not cheap. While still expensive, part of this premium comes from visibility and credibility. If margins expand and overseas diversification delivers, these multiples could well find justification in the years ahead.