The shares of this smallcap company surged by around 7 percent in Tuesday’s trading session after receiving an order worth Rs. 1,307 crores from Signature Global. On a YTD basis, the stock has delivered around a 60 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 8,374 crores, the shares of Ahluwalia Contracts (India) Ltd started Tuesday’s trading session on a higher note at Rs. 1,269.95 compared to its previous close of Rs. 1,196.05.
During the trading session, the shares hit a high of Rs. 1,280.50, gaining around 7 percent and are currently trading at Rs. 1,251 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had secured two work orders from the real estate firm Signature Global.
The company has secured its first contract from Signature Global Business Park Private Limited for civil structure, partial MEP, and finishing works for all towers, basements, and ancillary buildings at the De-luxe DXP project in Gurugram. The contract is valued at Rs 1,144 crores and will be completed over the next 48 months.
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Additionally, the company has been awarded a second contract by Signature Global Homes Private Limited for civil structure, partial MEP, and finishing works for all towers, basements, and ancillary buildings at the Iconic Tower project in Gurugram. This contract is worth Rs 163 crores and is scheduled for completion within the next 48 months.
Financials:
Looking at the company’s financial performance, the revenue decreased by 21 percent from Rs. 1,164 crores during the March quarter to Rs. 919 crores in the June quarter. On the other hand, the net profits declined by around 85 percent from Rs. 200 crores to Rs. 31 crores during the same period.
Order Book:
As of June 2024, the net order book stands at Rs. 13,143.72 crores, with expected execution over the next 2.5 to 3 years. Furthermore, the total order inflow for FY25 to date has reached Rs. 4,945.54 crores.
Future Outlook:
The management remains confident about achieving double-digit margins for FY25, especially in the year’s second half. Revenue guidance for FY25 is maintained at a 15 percent-20 percent growth rate, with similar expectations for FY26.
In the coming months, the management anticipates an order inflow of Rs. 2,500-Rs. 3,500 crores supported by a pipeline of Rs. 5,000-Rs. 6,000 crores.
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Company Profile:
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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