Last Updated : Nov 27, 2017 04:30 PM IST | Source:

Accumulate Ahluwalia Contracts; target of Rs 390: Centrum

Centrum recommended accumulate rating on Ahluwalia Contracts with a target price of Rs 390 in its research report dated November 21, 2017.

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Centrum's research report on Ahluwalia Contracts (India)

Ahluwalia Contracts (India) Ltd (ACIL), for Q2FY18, reported good numbers. Revenue grew 15% YoY to Rs335 crore, on the back of better execution. EBITDA margins expanded by 101bps to 14.9%, aided by lower raw material cost (declined by 1,250 bps to 35.1% of sales) and employee expense (declined by 454bps to 10.3%). Good operational performance along with decline in interest cost (down 35% to Rs5 crore), led to net profit growth of 29% to Rs26 crore. As of Sept’17, debt stood at Rs63 crore (vs Rs80 crore in Jun’17).

We maintain our Accumulate rating with a revised target price of Rs390, valuing it at 18x FY19E EPS.

For all recommendations report, click here

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First Published on Nov 27, 2017 04:30 pm