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%.
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. advises users to consult with certified experts before making any investment decision.
By Shubham Kumar Goodreturns source: Dailyhunt