This largest civil contractor in India with five decades of experience in infrastructure construction witnessed its shares jump 4.3 percent to a 52-week high of Rs 699 a share on Friday.
With a market capitalization of Rs 4,571 crores. The shares of Ahluwalia Contracts India Ltd gained after the company received a new civil construction order.
As per company’s filing on BSE, the company obtained a work order from Indian Financial Technology and Allied Services for Civil Structural, and Related External Development Works for Enterprise Computing and Cybersecurity Training Institute at Bhubaneshwar, Orissa for Rs.199.58 Crores.
At 12:16 p.m. on the NSE, Ahluwalia Contracts India shares were trading at Rs 682.00, up 2.43 percent from the previous close.
Ahluwalia Contracts (India) Ltd has been in the construction sector for over 40 years and specialises in the planning and scheduling of manpower, equipment, and supplies, among other things.
In the last six months, the stock has increased by 36.42 percent, while it has increased by 58.77 percent in the last year from Rs 430.20 to present values.
According to the company’s financials, net profit increased by 71% in Q4FY23 to Rs 72 crore, up from Rs 42 crore in Q4FY22. Furthermore, operating revenue increased by 18% to Rs 863 crore from Rs 730 crore in the previous year’s quarter.
Revenue grew slightly from Rs 2,692 crore in FY 21-22 to Rs 2,838 crore in FY 22-23. During the same period, net profit climbed from Rs 155 crore to Rs 194 crore.
Having a positive outlook for the company,ICICI direct gave a buy tag to the company with a target price of Rs 800, implying a 17 percent increase over the present market level. The basis for such a recommendation is based on the company’s solid order book, financial sheet, and project performance.
As per the shareholding pattern,promoters own 55.32 percent of the firm, foreign institutional investors own 11.75 percent, and domestic institutional investors own 27.4 percent.
Written by Omkar Chitnis
