Moneycontrol
Last Updated : Sep 18, 2018 04:01 PM IST | Source: Moneycontrol.com

Buy Ahluwalia Contracts; target of Rs 450: Dolat Capital

Dolat Capital is bullish on Ahluwalia Contracts has recommended buy rating on the stock with a target price of Rs 450 in its research report dated May 31, 2018.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on Ahluwalia Contracts


ACIL posted 5.3% YoY de-growth in Q4FY18 revenue to `4.5bn (8.7% below estimates) due to muted execution. EBITDA margin expanded by 286bps YoY to 11.9% (110bps below estimates), primarily due to lower construction cost which is down by 360bps YoY to 78.2% of revenue. Adj. PAT grew by 54.0% YoY to `310mn (15.4% below estimates) due to strong operating performance coupled with lower interest cost and lower tax rate (down 333bps). ACIL has declared a dividend of 15% (`0.3 per share) after a period of six years.


Outlook


ACIL to be remain net cash company and have one of the highest average RoCE/ RoE of 34.4%/ 23%, respectively, over FY18-20E among peers. We remain positively biased on business model backed by quality management and healthy return ratios. It looks attractive at 15.3x/ 12.4x FY19E/ FY20E EPS and hence we reiterate ‘BUY’ with an upward revised TP of `450 (15x FY20E EPS).


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Jun 11, 2018 05:13 pm
Sections