Accumulate Ahluwalia Contracts (India), target Rs 421: Centrum Wealth Management
Centrum Wealth Management has an accumulate call on Ahluwalia Contracts (India) with a target price of Rs 421.
The current market price of Ahluwalia Contracts (India) is Rs 416.45.
Time period given by the brokerage firm is one year when Ahluwalia Contracts (India) price can reach defined target.
"Post our Q2FY18 result update click here (21 Nov’17 at Rs 358, Rating: Accumulate), ACIL touched its 52 week high of Rs 426 (on 27 Dec’17). The stock has corrected to Rs 371 levels (return nearly 4 per cent since the update) and trades at a P/E of 16.6/14.1x on FY19E/20E basis. ACIL’s cautious bidding approach and execution of better margin orders has enabled EBITDA margin expansion for the quarter. Owing to the competitive intensity being high we have maintained our EBITDA margin estimates of nearly 13 per cent over FY18-20. The company has a healthy bid pipeline and its focus on higher ticket size projects (+.500 crore) could aid future growth. We maintain our Accumulate rating and value the company at 16x FY20E EPS giving a target price of Rs 421," said a report from Centrum Wealth Management.
The current market price of Ahluwalia Contracts (India) is Rs 416.45.
Time period given by the brokerage firm is one year when Ahluwalia Contracts (India) price can reach defined target.
"Post our Q2FY18 result update click here (21 Nov’17 at Rs 358, Rating: Accumulate), ACIL touched its 52 week high of Rs 426 (on 27 Dec’17). The stock has corrected to Rs 371 levels (return nearly 4 per cent since the update) and trades at a P/E of 16.6/14.1x on FY19E/20E basis. ACIL’s cautious bidding approach and execution of better margin orders has enabled EBITDA margin expansion for the quarter. Owing to the competitive intensity being high we have maintained our EBITDA margin estimates of nearly 13 per cent over FY18-20. The company has a healthy bid pipeline and its focus on higher ticket size projects (+.500 crore) could aid future growth. We maintain our Accumulate rating and value the company at 16x FY20E EPS giving a target price of Rs 421," said a report from Centrum Wealth Management.
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