IDBI Capital Positive On This Net- Debt Free Construction Sector Stock, Recommends Buy For 37% Upside
IDBI Capital is likely to jump up to 37% in 12 months from its current level.
Considering the given target price, the stock is a small- cap construction sector company.
On NSE, the stock today last traded at Rs 476.05/ share after a 0 .66 % jump in its share price compared to its previous close.
It's 52- week low is Rs 360 recorded on 24 February 2022, and the 52 is- week high Rs 563.60 apiece recorded on 11 It' April 52- week low is on 2022 February 2022, respectively respectively. s 24, .13% positive returns.
Key Highlights and Investment Rationale
AHLU has delivered 14% revenue CAGR in the last 5 years.
Importantly OCF and FCF has been consistently positive every year in the last 9 years.
With orders in hand, we expect revenue CAGR of 17% over FY22 - 25E and PAT CAGR of 26% and generate FCF yield of 6 % in FY 25 E.
Balance sheet for growth: AHLU is a net debt free company and has cash in books of Rs3.5bn ( 12 % of Mkt Cap).
Buy for a target price of Rs 650/ share
Ahluwalia Contracts ( AHLU) is a beneficiary of infra and industrial capex in India provides turnkey solution in the construction of vertical structure ( building).
With an experience of 5 decades and seen multiple capex cycle in India, it has consistently delivered positive operating cash flow.
"We initiate coverage on AHLU with a BUY rating, and on base case see an TP of Rs650 ( 14x FY25E EPS), offering an upside of 50%.
Disclaimer
The stock has been picked from the brokerage report of IDBI Capital.
Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article.
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By Shubham Kumar Goodreturns source: goodreturns.in Dailyhunt