Last Updated : May 27, 2016 01:43 PM IST | Source:

Buy Ahluwalia Contracts; target of Rs 351: Emkay

Emkay is bullish on Ahluwalia Contracts has recommended buy rating on the stock with a target price of Rs 351 in its research report dated May 25, 2016.

  • bselive
  • nselive
Todays L/H

Emkay's research report on Ahluwalia Contracts

Ahluwalia Contracts Q4FY16 revenue came at Rs 3.82bn +22.1% YoY largely in line with our expectation of Rs 3.86bn driven by strong execution run rate. The company is targeting revenue of Rs 15-16bn/Rs 18-19bn (20% growth) in FY17E/18E and order inflow of Rs16 - Rs20bn in FY17E and EBITDA margins at 13-14% in FY17E. EBITDA came at Rs 526 mn +88.6% YoY higher than expectation of Rs 424.6mn as EBITDA Margin came at 13.7% +485 bps YoY higher than expectation of 11%.

Given the revenue & margin visibility, reduction in leverage and improvement in working capital which will drive the earnings CAGR of 23% over FY16-18E. Maintain Buy, with a target price to Rs 351/share.

For all recommendations, click here


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

First Published on May 27, 2016 12:56 pm