Ahluwalia Contracts (India) Ltd. Share Price Analyzed
Key Points
- Significant share price increase driven by a major new order.
- Company secured a ₹888.38 crore contract for a key project.
- Project development at Sitamarhi District, Ayodhya for the Ram Janmabhoomi.
- Strong financial results: 106% profit surge and high revenue growth.
- Large order book of ₹18,057.60 crore provides future growth potential.
- Strategic investments boosted revenue growth significantly.
Ahluwalia Contracts (India) Ltd. saw a substantial rise in its share price on Wednesday, reaching a high of ₹1,025. This increase was primarily due to the announcement of a new order. The company received a contract valued at ₹888.38 crore, creating positive investor sentiment.
The Order Details
The contract is for developing the Shri Ram Janmabhoomi Tirtha Kshetra project in Ayodhya, specifically at Punauradham, a site within the Sitamarhi District. This important project involves developing the birthplace of Sita.
Ahluwalia Contracts will be responsible for the entire project, including design, procurement, and construction, which is expected to take 42 months to complete. This large-scale project immediately boosts investor confidence.
Financial Performance Highlights
Recent financial results show a significant improvement. The company’s net profit increased by a remarkable 106% to ₹79.1 crore, compared to ₹38.4 crore in the previous year. This demonstrates impressive operational efficiency.
The company’s total revenue also increased significantly, rising by 16.53% to ₹11,923 crore. Furthermore, the Ebitda experienced a robust 75.2% year-on-year growth, reaching ₹1,286 crore. These figures indicate strong growth potential.
The company’s order book stands at ₹18,057.60 crore, and they expect to execute most of it within the next two and a half years, as noted by Deputy Managing Director Shobhit Uppal. This provides a solid foundation for future growth and revenue generation.
The company anticipates top-line growth of 17-26% in the current financial year, exceeding the previously projected 15-20% growth. These ambitious targets underscore their commitment to sustained expansion.
Strategic investments are key to driving sustained revenue growth for Ahluwalia Contracts.
