Ahluwalia Contracts Q4 Results Review - Impacted From One-Off: IDBI Capital

IDBI Capital Report

Ahluwalia Contract India Ltd.'s Q4 FY24 Ebitda came lower than our and consensus estimates by 13%. This was due to lower Ebitda margin at 9% versus 12.8% YoY, impacted from election related impact and shortage of labour.

Revenue increase was healthy at 35% YoY. Margin is guided by Ahluwalia Contracts to be more than 10% in FY25E. Ahluwalia Contract’s consistency in order win has continued.

After winning orders of Rs 55 billion in FY24, Ahluwalia Contract is level-one in orders of Rs 40 billion and guides to close FY25 with order inflow of Rs 70 billion plus. We retain Buy rating on the stock with target price of Rs 1,412, d at 25 times FY26E EPS.

Company order book of Rs 112 billion (2.9 times trailing twelve months revenue), with Government: Private orders at 65:35, company plans to further improve private orders and maintain Public : Private ratio at 50:50.

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