Shares of this engineering and contract construction company jumped 7 percent in Monday’s trading session after receiving an order worth Rs. 394.36 crores. The shares have delivered more than 90 percent in one year to its one year.
With a market capitalization of Rs. 6,135 crores, the shares of Ahluwalia Contracts (India) started Monday’s trading session on a lower note at Rs. 864 compared to the previous close of Rs. 865.35. During the trading session, the shares hit a high of Rs. 926.90, gaining around 7 percent, also recorded as the company’s fresh 52-week high.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received an order for the construction of the residential tower and clubhouse works at Urban Oasis, Sector-62, Gurgaon, Haryana worth Rs. Rs. 394.36 crores. The orders are to be executed by 30 months.
Having a look at the company’s order book, the gross order book increased by 11 percent from Rs. 13,033 crores during FY22 to Rs. 14,464 crores in FY23. On the other hand, the unexecuted order book zoomed by 41 percent from Rs. 5,791 crores to Rs. 8,162 crores during the same period.
Coming onto the latest financial statement, the revenue increased by 18 percent from Rs. 764 crores during the June quarter to Rs. 902 crores in the September quarter. In addition, the net profits improved by 10 percent from Rs. 50 crores to Rs. 55 crores during the same timeframe.
As of September 2023, the company gets orders from multiple business segments, primarily from the Infrastructure segment which contributes around 30 percent of the order book and the remaining 70 percent of the orders are received from Hospitals, Institutional Residential Commercial, and hotel segments. Furthermore, previously the company in January had received an order worth Rs. 180 crores from Max Smart Super Specialty Hospital for the expansion of the hospital.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 16.22 percent during FY 21-22 to 17.14 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 22.16 percent to 23.11 percent during the same timeframe. Furthermore, the net profit margin increased from 5.76 percent during FY21-22 to 6.83 percent during FY22-23.
Headquartered in New Delhi, Ahluwalia Contracts (India) was incorporated in 1979. The company is engaged in engineering and contract construction, delivering state-of-the-art infrastructure and building projects for clients in India.
Written By Vaibhav Patil
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