Ahluwalia Contracts (India) Ltd. share price target

Recommendation: We maintain our BUY recommendation on the stock and roll over our estimate to FY25.

We retain our BUY rating on the stock with a target price of Rs 485/share, implying an upside of 20% from the CMP.

We value the company at 13x FY24E EPS to arrive at the TP of Rs 515 /share, implying an upside potential of 14% from the current levels.

We initiate coverage on the company with a BUY rating and value the company at 12.5x FY24E EPS to arrive at the target price of Rs 490/share, implying an upside potential of 17% from the current levels.

project sites fell to ~30% levels, but improved substantially with ease in lockdown restrictions and fall in cases. Though it is yet to reach pre-covid levels in many sites. Even with healthy order book and rising execution pace, management gave conservative guidance of 10-15% revenue growth in FY22 considering headwinds of second wave (and a possible third wave). EBITDAM is expected to be in 11-12% range, given major provisioning now complete. We believe ACIL is one amongst few EPC companies that turned around with significant improvement in profitability through its sound business strategy,...

Labour availability stands at 80% pre-covid levels (vs 60% pre-covid levels by Sep'20); Company expects to reach ~100% by Dec'20. Ahluwalia Contracts (ACIL) posted a strong quarterly performance with execution rising 4.1% YoY (vs PLe 23% decline) led by rise in labour...

Order book stands strong at Rs76.2bn (4.2x TTM revenues) as on 1QFY21 primarily driven by Hospital (48%) and Institutional (26%) segments. Ahluwalia Contracts (ACIL) posted a decent set of results with revenues falling 21.1% YoY (vs PLe 44% decline) despite challenging environment....

We increase our revenue/ EBITDA margin estimates by 7.1%/ 297 bps for FY21E factoring Q1FY21 results. Accordingly, we increase our PAT estimates by 674.1% for FY21E. We broadly maintain our FY22E...