Pipavav, which was recently been listed, has good visibility in terms of the order book, which is over 10 times its 200910 revenue. At present, the company is building about three ships on which the work is in the advanced stages. One of these ships is expected to be delivered by the end of the current year — this will be its first delivery. With the company's capacities now being operational, it is expected to report a profit of `325 crore in the current financial year as against a loss of `46 crore in 2009-10. Further, the company is eyeing opportunities in the defence, offshore, repair and fabrication segments. The stock is relatively expensive, trading at 15 times its 2011-12 estimated earnings, which factors in the medium-term growth in earnings. Investors could buy on dips.
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