Last Updated : Aug 18, 2016 02:00 PM IST | Source:

Buy Ahluwalia Contracts; target of Rs 320: Religare

Religare 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 16, 2016.

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Religare's research report on Ahluwalia Contracts

AHLU’s Q1FY17 PAT at Rs 215mn (+14.5% YoY) was in line with estimates even as topline fell short of expectations due to delays in certification of bills. Cost optimisation and a better order mix drove a 160bps expansion in EBITDA margins to 14%. Order inflows of Rs 9.5bn till date in FY17 shored up the order book to Rs 42bn (plus L1 position in orders worth Rs 2.5bn). We restate BUY (Mar’17 TP: Rs 320) as we derive comfort from AHLU’s strong order inflows, improving margin profile and reducing debt.

We value AHLU at 15x-FY18E EPS. Maintain BUY; Mar’17 TP Rs 320.

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First Published on Aug 18, 2016 02:00 pm