Reliance Securities is bullish on Ahluwalia Contracts has recommended buy rating on the stock with a target price of Rs 405 in its research report dated February 20, 2018.
Reliance Securities's research report on Ahluwalia Contracts
Ahluwalia Contracts (ACIL) has reported a better-than-expected operating performance in 3QFY18, with its reported EBITDA growing sharply by 32% YoY and 25% QoQ to Rs625mn mainly on account of continued belt-tightening exercise and a good progress on high-margin projects. While reported revenue rose by just 1% YoY to Rs3.6bn, revenue on comparable basis grew by ~10% YoY. EBITDA margin rose by 411bps YoY and 240bps QoQ to 17.3%, which is the key positive, in our view.
Outlook
We expect ACIL to add more quality projects to its kitty, going forward.Marginally tweaking our earnings estimates for forward years and introducing our FY20 estimates, we reiterate our BUY rating on the stock with a revised Target Price of Rs405.For all recommendations report, click here
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