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Axis Securities
Target: ₹610
CMP: ₹524.10
Ahluwalia Contracts’ unadjusted order book as of date stands over ₹9,500 crore excluding the recently declared L1 in the CSMT Station redevelopment project worth ₹2,450 crore. The current order book size is the highest in the history of the company.
This robust order book gives revenue visibility for the next 3 years. Geography-wise, the order break-up is - East: 42 per cent; North: 36 per cent; West: 12 per cent; South: 5 per cent; and Overseas 5 per cent. The Government and Private segments form 82 per cent and 18 per cent of the overall project.
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We remain positive about the company’s future growth which is supported by its robust order book, strong liquidity position,and experienced management bandwidth.The government’s focus on infrastructure development further provides necessary tailwinds to the company’s prospects.
We expect the company to deliver Revenue/EBITDA/APAT growth of 15 per cent/20 per cent/23 per cent CAGR over FY22-FY25. Currently, the stock is trading at 14x and 12x FY24 and FY25E EPS.
We value the company at 14x (13x earlier) FY25E EPS to arrive at the TP of ₹610/share (₹545/share earlier).
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