Centrum's research report on Ahluwalia Contracts
Ahluwalia Contracts (India) Ltd (ACIL), for Q3FY18, reported decent numbers. Revenue grew by ~1% YoY to Rs361 crore, growth was muted on the back of GST impact (adjusting for the same, revenue would have been up by 9-10%). Execution of better margin orders led to EBITDA margin expansion of 413bps to 17.3%. Good operational performance aided net profit growth of 20% to Rs29 crore. As of 31 Dec’17 debt was at Rs61 crore (vs Rs63 crore as of 30 Sept’17).
Outlook
The company has a healthy bid pipeline and its focus on higher ticket size projects (+Rs500 crore) could aid future growth. We maintain our Accumulate rating and value the company at 16x FY20E EPS giving a target price of Rs421.For all recommendations report, click here
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