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

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.

Outlook

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

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First Published on Aug 28, 2017 03:41 pm
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