Nagarjuna Construction Company's stock has almost reduced to half and is trading at a monthly average price earning multiple of 11.
Even though the company has reported disappointing numbers in the quarter ended December 2010 due to execution delays, the inflow of orders remains strong in the last nine months.
In addition to it, NCC recently acquired a 55% stake in the power plant, along with Gayatri projects. This is in line with its long-term strategy of getting into the power business, which is going to be a catalyst for a further upside, besides earning from regular revenue streams.
Since NCC is well-placed to reap the benefits due to a well-diversified portfolio across the infrastructure segment, investors with a 2-year horizon can take exposure.
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