Gammon India Ltd, which was trading at 400 levels last week, has shed some weight. The stock was down to Rs 386.10 in the past one week.The scrip has gained a bit on Friday, and analysts are positive as the company is expected to win some high-value projects in the near term future.Gammon is a well diversified construction company having a pan India presence. It was one of the early entrants in infrastructure privatisation business having already bagged 5 build-operate-tranfer (BOT) projects.It is estimated that investment in infrastructure would amount to Rs 3,919 billion over FY04-07, which would translate to orders worth Rs 2623 billion for construction companies.Gammon has forayed into the infrastructure business through its wholly owned subsidiary, Gammon Infrastructure Projects (GIPL). The company also has the technical expertise to execute critical projects.The company has a well-diversified order book position, with maximum exposure of 25 per cent to any sector, thereby hedging its business against volatility, and ensuring stability in margins. The company's order book stands at Rs 5234 crore with average age of 2.5 to 3 years which would translate into a 31 per cent CAGR in revenues over CY05-07.
