CARE maintains fundamental grade of 4/5 on ACIL
CARE Research has come out with its report on Ahluwalia Contracts India (ACIL). The research firm has assigned a valuation grade of 5/5 and fundamental grade of "4/5" to the company, in its July 12, 2011 report.
July 14, 2011 / 18:25 IST
CARE Research has come out with its report on Ahluwalia Contracts India (ACIL). The research firm has assigned a valuation grade of 5/5 and fundamental grade of "4/5" to the company, in its July 12, 2011 report.
ACIL reported Q4YF11 revenues of Rs 5.75bn registering a growth of 17.5% yoy basis while PAT declined by 20.0% to Rs 122mn. EBITDA margin for the quarter came in at 5.4% on account of higher RM costs. Overall, FY11 revenues were higher by 7.8% to Rs 16.9bn while PAT declined by 13.4% to Rs 708mn.Revenue growth was flat, expect resurgence ahead
Revenue growth for the year under review was relatively flat to 7.8% to Rs 16.9bn on account of slowdown in execution in some real estate projects. Going forward, we expect revenues to increase by 15% in FY12E on account of improvement in execution of projects.Strong order inflow continues
The order book as of FY11 stands at Rs 34bn, indicating a book to bill ratio of 1.8x of FY12E earnings. We believe this provides reasonable revenue visibility for next 2 years. Order inflow for the year was strong at Rs 21bn, up by 37% yoy.Margins under pressure
EBITDA margin for FY11 came in at 8.9% which was below our expectation on account of cost overruns and time delays in execution of orders. Further, PAT margins came in at 4.2%, down by 100bps on yoy basis.Valuation
The CARE Equity Research assigns valuation grade of 5/5 to ACIL based on the Current Intrinsic Value (CIV) of Rs.165 as against Current Market Price (CMP) of Rs127, indicating that shares of ACIL have
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