Buy Ahluwalia Contracts (India), target price Rs 513: Anand Rathi

Anand Rathi has buy call on Ahluwalia Contracts (India) with a target price of Rs 513. The current market price of Ahluwalia Contracts (India) is Rs 410.85. Time period given by analyst is one year when Ahluwalia Contracts (India) Ltd. price can reach defined target.

Ahluwalia Contracts (India) Ltd., incorporated in the year 1979, is a Small Cap company (having a market cap of Rs 2753.86 Crore) operating in Construction sector.

Ahluwalia Contracts (India) Ltd. key Products/Revenue Segments include Contract Revenue, Scrap, Property Development and Lease Rentals for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 742.20 Crore, up 7.80 % from last quarter Total Income of Rs 688.50 Crore and down -3.00 % from last year same quarter Total Income of Rs 765.18 Crore. Company reported net profit after tax of Rs 42.34 Crore in latest quarter.

Investment Rationale
On a combination of slightly lower revenue estimates (on no new orders in Q4), pruned depreciation (on revised capex assumptions) and finance costs (changed debt assumptions), FY23e earnings are ~0.7% better, and FY24 are ~5% higher. On revised estimates, the stock (excl. the Kota asset) trades at 10.7x FY24e EPS. Risk: Slow order addition.

Promoter/FII Holdings
Promoters held 55.32 per cent stake in the company as of 31-Dec-2021, while FIIs owned 12.34 per cent, DIIs 28.03 per cent.