HDFC Securities Buy Call: Ahluwalia Contracts Share Price Target at Rs 700.
HDFC Securities Limited recently issued Buy Call on Ahluwalia Contracts, along with a new Target Price for the company. Now, let’s examine the research reports and explore their overviews.
Ahluwalia Contracts India Ltd is a renowned construction company based in India. It was founded in 1979 by Mr. Bikramjit Ahluwalia and has its headquarters in New Delhi, India. The company operates across the country, serving a wide area with its expertise.
Ahluwalia Contracts India Ltd specializes in providing a comprehensive range of construction services. Their portfolio includes the construction of residential, commercial, and institutional buildings, as well as infrastructure projects such as roads, bridges, and airports. The company has successfully executed numerous projects, earning a strong reputation for its commitment to quality and timely delivery.
First of all, let’s take a look at the current share price of Ahluwalia Contracts. To visualize these changes, we can refer to the Ahluwalia Contracts Share chart which displays the historical share prices, indicating the ups and downs over time.
Research Report
HDFC Securities Limited’s Report Overview
Ahluwalia Contracts (AHLU) recently announced its financial results, reporting revenue, EBITDA, and APAT figures of INR 8.6 billion, INR 1.1 billion, and INR 0.8 billion, respectively. These results surpassed our estimates by 17.7%, 9.5%, and 10.8% respectively. The company also exceeded its order inflow (OI) guidance for FY23, with an OI of INR 50.6 billion, surpassing the target of INR 45 billion. As of March 2023, the order book (OB) stood at INR 81.6 billion.
Ahluwalia Contracts has demonstrated a well-diversified order book, providing a natural hedge against slowdowns in specific business or geographic segments. In FYTD24, the company achieved an OI of INR 37.5 billion, resulting in an OB of approximately INR 120 billion, equivalent to around 4.2 times the FY23 revenue.
Based on the strong order inflows, improved margins, and increased execution pace, AHLU has guided for a 20% YoY revenue growth in FY24. The company expects EBITDA margin (excluding other income) to be approximately 11% or higher, and projects an OI of INR 20-25 billion for the remainder of the year.
Considering the robust performance, we have revised our FY24/25E EPS estimates upwards and have increased the target multiple from 13x to 14x. We maintain a BUY rating on the stock, with a revised target price of INR 700 per share.
HDFC Securities Limited Buy Call: Ahluwalia Contracts
Ahluwalia Contracts’ current market price is Rs 580. Recently, HDFC Securities Limited recently issued Buy Call on Ahluwalia Contracts with a new Target Price of Rs 700.
| Company | Ahluwalia Contracts |
|---|---|
| AUTHOR | HDFC Securities Limited |
| DATE | 30 May 2023 |
| Current Price | Rs 580 |
| TARGET Price | Rs 700 |
| Type | Buy |
| Report |
Here’s a table summarizing the ownership structure of the company.
| Shareholding Pattern | Dec-22 | Mar-23 |
|---|---|---|
| Promoters | 55.32 | 55.32 |
| FIs & Local MFs | 27.19 | 27.97 |
| FPIs | 12.19 | 11.50 |
| Public & Others | 5.30 | 5.21 |
| Pledged Shares | 7.16 | 7.16 |
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Disclaimer:– This Share Price Target price should not be taken as a guarantee or prediction of future stock performance, nor should it be considered as investment advice. Sharedhan.com or its representatives shall not be held liable for any losses or damages incurred as a result of reliance on this share price target price.
