Buy Ahluwalia Contracts (India), target price Rs 515: Axis Securities

Axis Securities has buy call on Ahluwalia Contracts (India) with a target price of Rs 515. The current market price of Ahluwalia Contracts (India) is Rs 420.15. 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 2812.14 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 30-06-2022, the company reported a Consolidated Total Income of Rs 616.45 Crore, down -16.94 % from last quarter Total Income of Rs 742.20 Crore and up 5.20 % from last year same quarter Total Income of Rs 585.97 Crore. Company reported net profit after tax of Rs 37.77 Crore in latest quarter.

Investment Rationale
The brokerage expects the company to generate healthy free cash moving with favourable attributes such as a strong and diversified order book position, healthy bidding pipeline, and order inflows, asset-light model, emerging opportunities in the construction space, efficient and timely execution supported by high ROE and ROCE of ~20.

Promoter/FII Holdings
Promoters held 55.32 per cent stake in the company as of 30-Jun-2022, while FIIs owned 12.28 per cent, DIIs 27.52 per cent.