Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
S A A R T H I
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
SEBI
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
IPOs
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Research
Arbitrages
Equity
Market Whispers
Tax Planning
Home
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
Research

| More

Ahluwalia Contracts India Ltd - 1QFY17 Result Update - BUY - Healthy Performance Continues - Reliance Securities

Posted On: 2016-08-18 20:03:31

Ahluwalia Contracts' (ACIL) reported a top-line growth of ~16% yoy at to Rs3.05bn marginally below our estimates in 1QFY17. Its operating profit surged by robust ~33% yoy to Rs424mn vis--vis our expectation of Rs413mn. EBITDA margin stood at strong 13.9% (+183 bps yoy & +15bps qoq) for 1QFY17 mainly due to execution of high-margin projects, while net profit grew by ~14% yoy to Rs215mn. We maintain our positive view on the stock, as we believe that ACIL is well-poised to witness a healthy traction on the backdrop of healthy order book, sound return ratios, improving balance-sheet amid positive indications on macroeconomic front. Its current order backlog stands at Rs42.3bn (3.3x TTM revenue), which provides healthy revenue visibility. Further, ACIL is expected to add orders worth Rs24bn (+50% yoy) in FY17E & Rs28bn (+17% yoy) in FY18E. We reiterate our BUY recommendation on the stock with a revised Target Price of Rs345.

Decent Performance with Strong Margins

ACIL's reported top-line stood at Rs3.05bn (+16% yoy) mainly owing to healthy order inflow over last 2 years (added aggregate orders worth >Rs35bn in FY15 & FY16) and improved macro scenario. Further, its operating profit grew strongly by 33% yoy to Rs424mn, while EBITDA margin stood robust at 13.9%. Net profit grew by ~14% yoy to Rs215mn marginally below our estimate of Rs238mn owing to lower other income.

Order Backlog Continues to Remain Robust

ACIL's current order backlog stands at Rs42.3bn (3.3x TTM revenue), which provides promising revenue visibility. Notably, it added projects worth Rs15.3bn in FY16 and further added ~Rs9.64bn in FY17E till date. It is presently bidding orders worth ~Rs20bn and was already declared L1 for projects worth Rs2.50bn. ACIL is confident to secure a decent size of orders predominantly from institutional and hospital segments.

Outlook and Valuation

ACIL continues to remain our preferred pick in construction space owing to (1) healthy order book and disciplined order-mix; (2) strong balance-sheet; (3) one of the best return ratios; (4) no equity commitment unlike several other construction companies; and (5) likely increase in commercial contribution from Kota Bus project. At CMP, the stock trades at 17.7x & 13.4x of FY17E & FY18E earnings, respectively. Upgrading our earnings estimates by ~4% for FY18E mainly to factor recent addition of high-margin projects, we reiterate our BUY recommendation on the stock with a revised Target Price of Rs345.

Shares of AHLUWALIA CONTRACTS (INDIA) LTD. was last trading in BSE at Rs.294.1 as compared to the previous close of Rs. 292.55. The total number of shares traded during the day was 7516 in over 56 trades.

The stock hit an intraday high of Rs. 296.5 and intraday low of 290. The net turnover during the day was Rs. 2217779.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Energy: 3QFY18E preview-expect a strong quarter
Telecom: Thoughts on Jio's latest price cut - Kotak
Initiating Coverage: Vascon Engineers Ltd - BUY - TP Rs.60 - Kotak
Initiating Coverage: Dilip Buildcon Ltd - BUY - TP Rs.1217 - Kotak
Brigade enterprises Ltd - Research Report - Rating - ACCUMULATE - Arihant Capital Markets
Jindal Stainless (Hisar) - Initiating Coverage - BUY - TP Rs.318 - Kotak
Consumer Products - Cautious: Quick look back at what worked in CY2017 - Kotak
VRL Logistics Ltd - Company Update - BUY - TP Rs.500 - Kotak
HDFC Bank board approves raising Rs.24,000 crore: Angel Broking
Talbros Automotive Components Ltd - Initiating Coverage - Buy - Kotak Securities
Shemaroo Entertainment Ltd - Q2 FY2018 Result Update Rating - NEUTRAL - Arihant Capital Markets
Bodal Chemicals Ltd - Result Update - REDUCE - TP Rs.176 - Kotak
Management Meet Update: Time Technoplast Ltd - ACCUMULATE - TP Rs.214 - Kotak
Petronet LNG - Company Update - BUY - TP Rs.285 - Kotak
FIEM Industries Ltd - Result Update - BUY - TP Rs.1203
Quarterly Market Outlook - Kotak Securities
Dollar Industries Ltd - Result Update - BUY - TP Rs.560 - Kotak
Infosys gets a new CEO and MD: Angel Broking
November Auto Sales Analysis: Angel Broking
NBCC (India) Ltd - Result Update - SELL - TP Rs.250 - Kotak
Bajaj Quadricycles, not enough to see a rally: Angel Broking
Sector Update: Infrastructure Sector - Kotak
Management Meet Update: Blue Dart Express - ACCUMULATE - TP Rs.4375 - Kotak
TRAI unequivocally votes for net neutrality: Angel Broking
The Pitch Report - Initiating Coverage: NESCO Ltd - BUY - TP Rs.611
KNR Constructions Ltd - Result Update - BUY - TP Rs.306 - Kotak
Dr. Reddy's gets EIR for Vizag Plant: Angel Broking
PNC Infratech Ltd - Result Update - ACCUMULATE - TP Rs.198 - Kotak
MRPL - Company Update - ACCUMULATE - TP Rs.138 - Kotak
AIA Engineering Ltd - SELL - TP Rs.1130 - Result Update - Kotak
Minda Industries (MNDA.IN) - Robust performance - CSEC Research
Karur Vysya bank (KVB IN) - Moderate loan growth, coupled with deteriorating asset quality - CSEC Research
Aksharchem India Ltd - REDUCE - TP Rs.680 - Result Update - Kotak
Voltamp Ltd - BUY - TP Rs.1248 - Result Update - Kotak
Shankara Building Products Ltd - BUY - TP Rs.1654 - Result Update - Kotak
Simplex Infrastructure Ltd - BUY - TP Rs.590 - Result Update - Kotak
MOIL Ltd - ACCUMULATE - TP Rs.265 - Result Update - Kotak
CHHOTA (to) MOTA ideas: Eveready Industries Ltd - BUY - TP Rs.522 - Kotak
Castrol India Ltd - Q2FY18 Result Update - Religare
Minda Corporation - Q2FY18 Result Update - Religare
Mold-Tek Packaging - Q2FY18 Result Update - Religare
The India Cements Ltd - BUY - TP Rs.223 - Result Update - Kotak
Tata Motors - BUY - TP Rs.514 - Result Update - Kotak
Ashok Leyland - ACCUMULATE - TP Rs.126 - Result Update - Kotak
Oil India Ltd - ACCUMULATE - TP Rs.381 - Result Update - Kotak
Sun TV Network - REDUCE - TP Rs.878 - Result Update - Kotak
Larsen & Toubro - ACCUMULATE - TP Rs.1337 - Result Update - Kotak
Voltas - ACCUMULATE - TP Rs.610 - Result Update - Kotak
Allcargo Logistics - BUY - TP Rs.205 - Result Update - Kotak
Mahindra & Mahindra - BUY - TP Rs.1604 - Result Update - Kotak


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018