Ahluwalia Contracts (India) Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for AHLUCONT, BSE:532811 Ahluwalia Contracts (India) Ltd.

Ahluwalia Contracts (India) Ltd.

24 Mar 2020

894.20

4.48%

Infrastructure (Update): Execution Coming To A Halt

Buy: Ahluwalia Contracts (India...

Target

HDFC Securities

The interaction covered large Road players, Building EPC players and T&D players. Large part of the halt is (1) Due to Central/State Govt directive on lock down and work from home (2) Few clients have told Contractors for closure till 31st March 2020 & (3) Goodwill towards employees'/laborers' safety. Whilst our last week survey was more encouraging with our coverage universe execution largely on track, the call for Janta Curfew has resulted in project sites staring at closure. We interacted with 15 large Indian Infra companies to gauge on the ground impact of COVID-19 on execution.

Ahluwalia Contracts (India) Ltd. is trading above its 100 day SMA of 839.7

Ahluwalia Contracts (India) Ltd.

15 Feb 2020

894.20

4.48%

Ahluwalia Contracts (3QFY20): Execution bottoming out. Maintain BUY

Buy: Ahluwalia Contracts (India...

HDFC Securities

AHLU delivered yet another 3QFY20 miss. We continue to remain patient as execution shall start on entire order backlog from 4QFY20E. While Mohammadpur project is in preparatory stage after receiving EC, Rs 5.5bn Charbagh Station redevelopment may get foreclosed due to environment hurdle. New wins of Rs 32.3bn doesn't have environment concerns. Delhi construction ban has lifted. The Robust balance sheet, net cash status and better than peers RoE/RoCE are other comforting factors. We maintain BUY. Key risks include (1) Slow down in government capex; (2) High cost inflation; (3) Stuck projects; (4) Lower than expected leasing in Kota BOT project. We maintain BUY on AHLU with unchanged TP of Rs 388 (15x FY21E EPS) despite 40% 3QFY20 miss on APAT. We downgrade our FY20E EPS by 24% to factor in slow order book to execution conversion and ~Rs 5.5bn of non moving projects. We retain FY21E estimate. Robust order book and strong BS augurs well for re-rating.

Ahluwalia Contracts (India) Ltd. is trading below its 150 day SMA of 912.8

Ahluwalia Contracts (India) Ltd.

10 Jan 2020

894.20

4.48%

Ahluwalia Contracts (Update): Bottoming out. Maintain BUY

Buy: Ahluwalia Contracts (India...

HDFC Securities

AHLU's guidance miss over the past two years (Rev/EBIDTA margins) has unnerved investors as this was on back of order book multiplying 2x (over FY18-19) and resultant expectation of higher growth delivery. Broader economic slowdown, tight liquidity, NGT ban and clients deferring project started impacting execution. However, these issues appear to be settling as execution has picked up from Nov-19. Robust BS, net cash status and better RoE/RoCE than its peers are other comforting factors. We maintain BUY. Key risks include (1) Slow down in government capex; (2) High cost inflation; (3) Stuck projects; (4) Lower than expected leasing in Kota BOT project. Despite 2x jump in order backlog during FY18-20, AHLU is forecasted to deliver 4.2% rev CAGR. Tight liquidity, EC delays/NGT ban and client specific issues impacted execution. We believe that guidance misses over the past two years are now behind and AHLU is well placed to deliver 15-20% growth over next two years. Strong balance sheet, robust cash flow and superior RoE augurs well for re-rating. We maintain BUY with TP of Rs 388. We value the core EPC operations at 15x FY21E EPS.

Number of FII/FPI investors decreased from 121 to 113 in Mar 2025 qtr

Ahluwalia Contracts (India) Ltd.

15 Nov 2019

894.20

4.48%

Ahluwalia Contracts (2QFY20): Execution wait gets longer. Maintain BUY

Buy: Ahluwalia Contracts (India...

Target

HDFC Securities

AHLU delivered yet another 2QFY20 miss. We continue to remain patient as execution shall start on entire order backlog from 4QFY20E. About Rs 10.6bn worth of projects (15% of OB) are slow moving of this Rs 5.5bn Charbagh Station redevelopment may get foreclosed due to environment hurdle. New wins of Rs 20bn doesn't have environment concerns. Delhi construction ban may get lifted by Nov-19 end. The Robust balance sheet, net cash status and better than peers RoE/RoCE are other comforting factors. We maintain BUY. Key risks include (1) Slow down in government capex; (2) High cost inflation; (3) Stuck projects; (4) Lower than expected leasing in Kota BOT project. We maintain BUY on AHLU with a reduced TP of Rs 388 (vs. Rs 402/sh earlier) despite 26% 2QFY20 miss on APAT. We downgrade our FY20/21E EPS by (13)/2.7% to factor in slow order book to execution conversion and ~Rs 10.6bn of non moving projects. Tight liquidity is another factor impacting growth. We value the core EPC operations at 15x FY21E EPS.

Number of FII/FPI investors decreased from 121 to 113 in Mar 2025 qtr

Ahluwalia Contracts (India) Ltd.

14 Nov 2019

894.20

4.48%

Ahluwalia Contracts -2QFY20 Result Update

Ahluwalia Contracts (India...

Reliance Securities

Ahluwalia Contracts (India) Ltd. is trading above its 100 day SMA of 839.7

Ahluwalia Contracts (India) Ltd.

11 Sep 2019, 12:00AM

894.20

4.48%

Ahluwalia

Buy: Ahluwalia Contracts (India...

Target

Dolat Capital

Though the global economic growth declined from 3.8% in 2017 to 3.6% in 2018, the Indian economy remained relatively steadfast. Growth in activity and capital inflows was witnessed in the Indian Construction Sector driven mainly by Government Capex. The EPC segment regained its growth momentum in 2018 due to positive developments in the economy, investments in transport infrastructure, energy and housing projects as stated in Construction in India' by Global Data. Private corporate Capex...

Number of FII/FPI investors decreased from 121 to 113 in Mar 2025 qtr

Ahluwalia Contracts (India) Ltd.

16 Aug 2019

894.20

4.48%

Ahluwalia Contracts (1QFY20): Another miss. Maintain BUY

Buy: Ahluwalia Contracts (India...

Target

HDFC Securities

AHLU has witnessed strong order inflows during FY19 but somehow there has been quarterly execution misses leading to failure in achieving FY19 annual guidance. FY20 is no different with a weak quarterly start amidst tight liquidity conditions. We remain skeptical on AHLU achieving its FY20E growth guidance. Only hope is strong starting order backlog and Patna PWD project (Rs 5.2bn) breaking ground from Sep-19. Robust balance sheet, net cash status and better than peers RoE/RoCE are other comforting factors. We maintain BUY. Key risks include (1) Slow down in government capex; (2) High cost inflation; (3) Stuck projects; (4) Lower than expected leasing in Kota BOT project. We maintain BUY with a reduced TP of Rs 402 (vs. Rs 430/sh earlier) despite 25/25/33% 1QFY20 miss on Rev/EBITDA/APAT. We downgrade our FY20/21E EPS by 6.6/6.6% to factor in ~Rs 10.6bn of non moving projects. We value the core EPC operations at 16x FY21E EPS.

Ahluwalia Contracts (India) Ltd. is trading above its 100 day SMA of 839.7

Ahluwalia Contracts (India) Ltd.

16 Aug 2019

894.20

4.48%

Ahluwalia Contracts -1QFY20 Result Update

Buy: Ahluwalia Contracts (India...

Target

Reliance Securities

Subdued Performance on Execution Slowdown; Maintain BUY Ahluwalia Contracts (AHLU) has delivered a subdued performance in 1QFY20, mainly marred by persistent delay in two key projects (Rs10bn), delay in bills certification and execution slowdown due to General Elections. Revenue declined by 22% YoY to Rs3.2bn, while EBITDA and PAT declined by 26% YoY and 37% YoY, respectively. EBITDA margin stood at 12.4% (-65bps YoY and +73bps QoQ). Further, AHLU added orders worth Rs4.3bn during the quarter and is in L1 position for projects worth ~Rs7bn. Current order backlog stands at Rs60bn (3.6x of TTM revenue), which continues to remain impressive. Despite soft revenue booking in 1Q, the Management maintained...

Ahluwalia Contracts (India) Ltd. is trading below its 150 day SMA of 912.8

Ahluwalia Contracts (India) Ltd.

31 May 2019

894.20

4.48%

Ahluwalia Contracts (4QFY19): A disappointing quarter. Maintain BUY

Buy: Ahluwalia Contracts (India...

Target

HDFC Securities

With an order pipeline of ~Rs 50bn (dominated by hospitals, educational and metro related projects) AHLU expects ~Rs 20bn of inflows in FY20E. Even though it was quite open earlier to add private sector projects in the near term, it admits that the public sector skew will continue and is unlikely to change materially for now. AHLU has survived across cycles and has tuned itself to the vagaries of the building segment. We like AHLU's conservative bidding approach, focus on balance sheet and staying away from unnecessary diversification. We maintain BUY. Key risks include (1) Slow down in government capex; (2) High cost inflation; (3) Stuck projects; (4) Lower than expected leasing in Kota BOT project. We maintain BUY with a reduced TP of Rs 430 (vs Rs 443/sh earlier) despite 11/25/24% 4QFY19 miss on Rev/EBITDA/APAT. We have downgraded our FY20/21E EPS by 6.8/3.1% to factor in ~Rs 8.3bn of non moving projects.