Last Updated : Aug 28, 2017 03:41 PM IST | Source:

Buy Ahluwalia Contracts; target of Rs 320: Reliance Securities

Reliance Securities is bullish on Ahluwalia Contracts has recommended buy rating on the stock with a target price of Rs 320 in its research report dated August 23, 2017

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Reliance Securities' research report on Ahluwalia Contracts

Led by improved execution, Ahluwalia Contracts (ACIL) has reported a strong and a betterthan- expected performance in 1QFY18. While its revenue surged by 65% YoY and 7% QoQ to Rs5.0bn, EBITDA grew by 26% YoY and 24% QoQ to Rs536mn vs. our estimate of Rs404mn.EBITDA margin stood 10.6% (-325bps YoY and +150 bps QoQ). Notably, higher sub-contractors expenses led to YoY decline in margins. Net profit surged by 37% YoY and 45% QoQ to Rs295mn vs. our estimate of Rs200mn.


We upgrade our recommendation on the stock to BUY from HOLD with anunrevised Target Price of Rs320.


For all recommendations report, click here

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First Published on Aug 28, 2017 03:41 pm