Last Updated : Sep 18, 2018 03:54 PM IST | Source:

Accumulate Ahluwalia Contracts (India); target of Rs 418: Centrum Research

Centrum Research recommended accumulate rating on Ahluwalia Contracts (India) with a target price of Rs 418 in its research report dated June 08, 2018.

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Centrum Research's research report on Ahluwalia Contracts (India)

Ahluwalia Contracts (India) Ltd (ACIL), for Q4FY18, reported mixed numbers. Revenue declined by 5% YoY to Rs447 crore, mainly due to slow execution and GST impact. EBITDA grew ~25% to Rs53 crore. Lower raw material cost and construction expenses led to EBITDA margin expansion of 286bps to 12%. Net profit grew 54% to Rs31 crore, on the back of lower interest cost. As of Mar’18, ACIL has reduced debt to Rs30 crore (vs Rs90 crore in Mar’17). ACIL has declared a dividend of Rs0.3/share, for the first time in the last 6 years.


Given the government’s focus on buildings, healthy bid pipeline and opportunities in the higher ticket size orders (Rs500 crore+), we anticipate ACIL to be a beneficiary of the same. We maintain our Accumulate rating and value the company at 16x FY20E EPS giving a target price of Rs418.

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First Published on Jun 13, 2018 03:29 pm