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Ahluwalia Contracts - Order Book At All Time High; Better Execution To Drive Growth: Axis Securities

We remain positive about the company’s future growth which is supported by its robust order book, strong liquidity position etc.

<div class="paragraphs"><p>Ahluwalia Contracts India Ltd. (Source: Company Webiste.)</p></div>
Ahluwalia Contracts India Ltd. (Source: Company Webiste.)

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Axis Securities Report

Ahluwalia Contracts India Ltd.’s unadjusted order book as of date stands over Rs 9,500 crore excluding the recently declared level-one in the CSMT Station redevelopment project worth Rs 2,450 crore. The current order book size is the highest in the history of the company. This robust order book gives revenue visibility for the next three years.

Geography-wise, the order break-up is East – 42%, North – 36%, West – 12%, South – 5% and overseas 5%. The Government and private segments form 82% and 18% of the overall project.

With new orders in hand and softening commodity prices along with the company’s superior execution and legacy issues that are now behind it, we expect Ahluwalia to post Ebitda margins growth on a gradual basis from the current 9%-10% to 11% by FY24-25E.

Click on the attachment to read the full report:

Axis Securities Ahluwalia Contracts Management Meet Note.pdf
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