IDBI Capital starts coverage on Ahluwalia Contracts; shares up

Ahluwalia Contracts (India)

12/12/2022 10:07

** IDBI Capital initiates coverage on construction company
Ahluwalia Contracts (India) Ltd  AHLU.NS  with a "buy" rating
and 650 rupees target price
    ** Company shares rise as much as 6.9% to 465 rupees,
marking their sharpest intraday pct gain since July 12; stock
hits its highest since Sept. 22
    ** Order inflow is in cyclical uptrend for AHLU - brokerage
    ** Experienced management, being net debt free, execution
ability with steady cash flow and lean balance sheet should
support future growth - analysts at IDBI Capital
    ** Brokerage expects company to close at highest ever annual
order inflow in FY23 at 73 bln rupees ($884.74 mln), after
having a subdued order book for two years
    ** Company's order book stood at 40.18 bln rupees, as of
Dec. 7 
    ** More than 48,100 shares change hands by 2:46 p.m. IST,
1.4x 30-day avg of 34,542 shares
    ** 8 of 9 analysts covering the stock rate "buy" or "strong
buy", 1 "hold"; median PT is 542 rupees - Refinitiv
    ** Shares of Ahluwalia Contracts up 13.3% YTD
($1 = 82.5100 Indian rupees)
 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))