Nagarjuna Construction (NCC) has secured orders aggregating to Rs1,221 crore. The work orders are spread across verticals of road construction, turnkey electrical works and building construction and are to be completed over a span of next 12-30months.
The order book of NCC stands at Rs16,600 crore or 3.5x its FY2010E revenues. At the CMP of Rs163, the stock trades at 16.4x FY2012E Earnings and 1.7x FY2012E P/BV. We recommend an ACCUMULATE on the stock with a target price of Rs186.