Ahluwalia Contracts Q1 Review - Robust Quarter, Fair Valuation: Dolat Capital
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Dolat Capital Report
Ahluwalia Contracts India Ltd. reported results above estimates on all fronts.
The company posted 132.2%/ 226.0%/ 365.2% YoY growth in revenue/ Ebitda/ adjusted profit after tax to Rs 5.8 billion/ Rs 604 million/ Rs 348 million in Q1 FY22.
We increase our revenue estimates by 4.3%/ 4.4% and maintain Ebitda margin estimates for FY22E/ FY23E factoring Q1 FY22 results.
Accordingly, we increase adjusted profit after tax estimates by 5.6%/ 5.6% for FY22E/ FY23E.
We estimate 17.5%/ 63.1% revenue/ adjusted profit after tax compound annual growth rate over FY21- 23E.
Ahluwalia Contracts should remain a net cash company, with an average return on capital employed/return on equity of 21.6%/ 17.3% over FY21-23E.
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