Buy Ahluwalia Contracts (India), target price Rs 519: HDFC Securities

HDFC Securities has buy call on Ahluwalia Contracts (India) with a target price of Rs 519. The current market price of Ahluwalia Contracts (India) is Rs 433.05.

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 2919.32 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 30-09-2021, the company reported a Consolidated Total Income of Rs 704.94 Crore, up 20.30 % from last quarter Total Income of Rs 585.97 Crore and up 59.66 % from last year same quarter Total Income of Rs 441.51 Crore. Company reported net profit after tax of Rs 35.78 Crore in latest quarter.

Investment Rationale
The brokerage maintains BUY with an increased TP of INR 519 (13x multiple; Sep-23E EPS), given the robust OB, net cash balance sheet, and better RoE/RoCE than peers. It expects the uptick in growth and margin expansion to continue through H2FY22 as COVID-19 headwinds recede.

Promoter/FII Holdings
Promoters held 55.32 per cent stake in the company as of 30-Sep-2021, while FIIs owned 12.15 per cent, DIIs 28.73 per cent.