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

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.

 
 
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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.

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First Published on May 27, 2016 12:56 pm
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