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Is the stock ripe for a rerating as the company sets the stage for sustained growth and visibility?
With improved execution, operational efficiencies are expected to drive margin expansion
New orders in the hydrocarbon space and expectations of larger PSU projects should augur well for the company
While the company has good opportunities and a strong balance sheet could support its initiatives in the exports and the energy transition space, it would be worth keeping a watch on their execution over the next two quarters
Over the next six months, orders worth Rs 30,000-40,000 cr could come up for bidding and the company is eying orders worth about Rs 2,500-3,000 crore. The stock has, however, undergone a rerating and valuations are high
Earnings visibility for the next two years is quite good on the back of improving margins
Business driven by strong order inflows, improving execution, stable margins, diversification into new markets, and a focus on green energy.