Shares of this engineering and contract construction company jumped around 1 percent in Friday’s trading session after receiving an order worth Rs. 364 crores from the Government of Assam. The shares have delivered a multibagger return of 120 percent to its shareholders in one year.
With a market capitalization of Rs. 6,969 crores, the shares of Ahluwalia Contracts (India) Ltd started Friday’s trading session on a flatter note at Rs. 1,030 compared to its previous close of Rs. 1,031.95. During the trading session, the shares hit a high of Rs. 1,071.25, gaining around 1 percent and are currently trading at Rs. 1,038 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that received a contract worth Rs. 364 crores from the Government of Assam to construct an open stadium in the state at Amingaon Sports Complex which will be completed in 24 months. With this, the order inflow during the current financial year stands at Rs. 6,537 crores.
Coming onto the company’s financial statements, the revenue zoomed by 14 percent from Rs. 902 crores during the September quarter to Rs. 1,026 crores in the December quarter. In addition, the net profits magnified by 29 percent from Rs. 55 crores to Rs. 71 crores during the same period.
As of February 2024, the company gets orders from multiple business segments, primarily from the Infrastructure segment which contributes around 32 percent of the order book and the remaining 68 percent of the orders are received from Hospitals, Institutional Residential Commercial, and Hotel segments.
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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