In this economy, you could close your eyes and make a random stock-pick in the construction sector of the JSE and still make money.

Though this may be an exa-ggeration, the construction sector is experiencing a boom. The much-vaunted public sector infrastructure development expen-diture is in full force and boosting construction order books.

The R23bn Gautrain rapid rail link has entered roll-out stage. Projects attached to the 2010 soccer World Cup are coming on stream. The SA Federation of Civil Engineering Contractors has declared that there should be enough contractual work way beyond 2010.

That has led to investors jostling for a piece of the action, which has pushed stock prices to high levels. The sector's average price:earnings (p:e) ratio is about 22, raising concerns about it being fully priced. By comparison, the mining sector's p:e is about 14 and the financial sector's 13.

Even yesteryear's lame ducks like Basil Read look much better. Management problems plunged Basil Read into spiralling losses in early 2000, followed by a collapse in the share price. Having touched a record low of 35c in 2001, its share price recovered to a high R23,94 in May this year.

Under the new leadership of Marius Heyns the group's revenue rose 88% to R1,1bn in the year to December, while net profit increased 120% to R57,2m. Its order book grew from R1bn to R2,3bn.

The phenomenal story of the construction sector boom is best represented by PPC, the cement group. It shook off concerns of operating at full capacity and the risk of cement importation with a sterling performance - revenue rose 19% to R2,6bn and operating profit rose 15% to R987m in the six months ended March. From a 17% improved headline earnings a share, the group declared an interim dividend of 385c.

PPC's return on equity as captured in the Top Companies figures came in at 89%, and return on assets 29,2%, placing it in a class of its own. Next in the sector is another building materials supplier Dawn, with a return on equity of 55,5% and a return on assets of 15%.

Wilson Bayly Holmes-Ovcon posted a 23,35% return on equity and a 6,4% return on assets. Its share has come a long way. Having touched a low of 140c in 1999, its stock leapt to a high of R95 in April this year. Its order book grew from R6,1bn last June to R8,5bn in December, excluding recently registered contracts. The industry is buoyant and growth prospects are positive, says the group in its statement of prospects.

That view is shared by industry giants such as Murray & Roberts (M&R) and Aveng.

Counting the prestigious Gautrain project in its books, M&R's construction and engineering order book increasd by 54% to R15,4bn in the six months to December. M&R's stock has risen to levels above R70 from about R20 in June last year.

Aveng's construction order book rested at R15,6bn in December from R11,3bn six months earlier, excluding new contracts. Its share price has more than doubled over the past 12 months to hit levels above R50.

Historically, the sector has been starved of new listings as construction stocks have long been depressed, defeating the key purpose of listing - to raise money on the market.

Things have changed. Building materials supplier Afrimat debuted late last year. Construction group Raubex followed in March and its stock has almost doubled.