C and C Constructions

C&C Constructions is small size construction player with diversified geographical and revenue mix. On the back of opportunities in the construction sector, the companys order book has grown constantly from mere Rs 109 crore in 2004-05 to currently at Rs 3,100 crore, which is about four times its 2008-09 revenues and good enough to ensure growth in the next 2-3 years. The roads segment accounts for almost 56 per cent of the order book followed by buildings at 27 per cent, railways at 13 per cent and water and sewerage accounting for the remaining. The company is making inroads in segments like water and power transmission wherein it has already got contracts like supply and errection of 400 kv transmission lines from Power Grid. The stock is trading at 8 times its trailing earnings and 4.5 times its estimated earnings for year ending June 2010.

The valuations look good considering the strong order book and future growth prospects. Analysts expect the companys revenue to grow by 50 per cent annually for 2009-10 and 2010-11. Growth beyond 2010-11 should also remain good considering the opportunities in the sector. Although the company came out with an IPO in around 2007, it has been consistently paying dividend since the last seven years.