Centrum's research report on Ahluwalia Contracts (India)
Ahluwalia Contracts (India) Ltd (ACIL), for Q2FY18, reported good numbers. Revenue grew 15% YoY to Rs335 crore, on the back of better execution. EBITDA margins expanded by 101bps to 14.9%, aided by lower raw material cost (declined by 1,250 bps to 35.1% of sales) and employee expense (declined by 454bps to 10.3%). Good operational performance along with decline in interest cost (down 35% to Rs5 crore), led to net profit growth of 29% to Rs26 crore. As of Sept’17, debt stood at Rs63 crore (vs Rs80 crore in Jun’17).
Outlook
We maintain our Accumulate rating with a revised target price of Rs390, valuing it at 18x FY19E EPS.
For all recommendations report, click here
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