Buy Ahluwalia Contracts; target of Rs 505: Edelweiss


Edelweiss’ research report on Ahluwalia Contracts

Ahluwalia Contracts (ACIL) continued its strong performance with Q4FY18 PAT jumping 54% YoY to INR310mn. Revenue fell 5% YoY (up 24% sequentially) to INR4.5bn, the YoY dip was primarily on account of GST impact. The company ended FY18 with order book of ~INR30.7bn; in Q1FY19, it has this far bagged projects worth ~INR16.2bn, increasing the order backlog to a robust ~INR47bn (book-to-bill of ~2.9x).

Outlook


Management continues to maintain a conservative bidding strategy, targeting large-size public sector projects and commercial/institutioncal orders in the private sector. Maintain ‘BUY’ with a target price of INR505.

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First Published on Jun 12, 2018 02:44 pm

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