The stocks of this Real Estate stock touch record high numbers after a well-known brokerage house initiates coverage on the same and provides a target price with a decent upside. The stock, in the last six months, has gained over 30 percent.
Shares of Ahluwalia Contracts (India) Limited zoomed more than 10 percent today and currently are available for Rs 672. The scrip hit its 52-week high mark and the same was recorded at a price of Rs 683.65.
One of the contributing factors for such a jump in stock prices today is pertaining to ICICI Securities, a well-known brokerage, initiating their coverage and giving a ‘Buy’ tag to the stock. Providing a target price of Rs 800, the stock shows a potential upside of around 20 percent compared to the current price levels.
The rationale justifying the recommendation is with regards to the company’s strong order book, the book-to-bill ratio which reached all-time high levels, etc.
The latest consolidated financials of the company portray an increase in the operating revenues as well as net profits with the former moving from Rs 2,692 crores during FY1-22 to Rs 2,838 crores in FY22-23, and, the latter, taking a shift from Rs 155 crores to Rs 194 crores.
Likewise, the profitability metrics were on the rise with the return on equity (ROE) increasing from 14.99 percent during FY21-22 to 15.79 percent in FY2-23, and, the return on capital employed (ROCE) staying uniform at levels of 21 percent.
As per the shareholding pattern data available for the March 2023 quarter, the Promoters hold a 55.32 percent stake (12.94 percent pledged), and Foreign Institutional Investors (FIIs) hold a 11.50 percent stake in the company
Ahluwalia Contracts (India) Limited is a company based in India that is primarily engaged in the business of civil construction. The company has also diversified into the segments of developing as well as operating commercial complexes under license arrangements and also engaged in Real Estate trading.
Written by Amit Madnani
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