Orderbook strength drives up counters

KEC& Jyoti Structure rise over 800% in one year

A quick visit to the corporate announcement section on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) website could help one identify stocks which have the potential of ending up multibaggers.

Fifteen firms informed these exchanges about their order book position as and when they received individual orders. Investors who bought these stocks on the basis of their rising order book position made a decent killing. Almost all these stocks outperformed the markets recording an appreciation of over 200 per cent and more.

Top gainers in the list are KEC International and Jyoti Structure, both appreciating by over 800 per cent in the last one year. Others in the list ""IVRCL Infrastructure zoomed up 512 per cent, Gammon India gained 388 per cent, Larsen & Toubro and Siemens moved up by over 200 per cent each. ABB, Alstom Projects and Praj Industries shot up over 150 per cent each from the point these companies informed the exchanges of their swelling order books.

The corporate announcement section of the BSE and the NSE websites carry live corporate actions of listed companies. Corporate actions or announcements have to be filed with the exchanges in compliance with the corporate governance norms.

KEC International, which has been sitting on an order book of around Rs 2,200 crore appreciated 855 per cent in the last one year. The scrip was hovering around Rs 8.65 on March 31, 2003, and moved up to Rs 82.65 a year later. The company flooded the exchanges with news beginning the last week of October 2003 when its tower testing station at Vashi, Navi Mumbai, received the approval of the development commissioner, SEEPZ, as a 100 per cent export-oriented unit.

Later, the company informed the exchanges that it had received orders worth $36 million on November 6, 2003, for Iraq reconstruction projects and an additional $39 million in orders on January 13. The company secured Rs 220 crore orders for the Tala project on January 16 and two orders worth Rs 190 crore on February 16 in the domestic market.

Jyoti Structure's scrip zoomed 837 per cent in one year with the stock moving up from Rs 10.70 to Rs 100.25. On October 10, 2003, the company received export orders worth $28.75 million (approx Rs 131 crore) from the Tunisian State Electricity and Gas Utility (STEG) for supply, erection and commissioning of high voltage overhead transmission lines in North Africa. On January 19, it was awarded a Rs 85 crore order by Powerlinks Transmission.

IVRCL Infrastructure stock gained 512 per cent on strong order book in the last one year. IVRCL Infrastructure, which had an order worth Rs 1,500 crore till December 2003, bagged orders worth Rs 435 crore more in the last three months. The company also made a preferential offer of 40 lakh shares at Rs 125 per share to CVC International and another 40 lakh shares to ChrysCapital II.

Rajesh Exports gained 136 per cent in the same period on significant export orders. The company received orders for supply of 2,100 kilos of jewellery from various buyers, which was delivered in the quarter ended December 2003.