10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Monday, June 22, 2009

Ahluwalia Contracts India Ltd:-Future growth prospects and outlook

Scripscan:Ahluwalia Contracts India Ltd
Traded in:Nse-bse

Story:Ahluwalia Contracts is a cash contractor and is engaged in constructing a wide range of structural buildings such as healthcare facilities, hotels, educational institutions, IT parks, commercial and industrial complexes, malls, and housing projects. It also produces ready mix concrete (RMC) on a small scale. It caters to a wide range of players from government to private sector developers.With increasing urbanization and rising incomes, demand for housing, office space, factories, malls, multiplexes and auditoriums are expected to remain high over the longer term in India. Ahluwalia Contracts is going to reap the benefit of these potential growth opportunities. The company's order book of Rs 4,150 crore as of December 2008 stands comfortable at 3.85 times trailing its four quarter sales ending September 2008. It has bid for projects worth Rs 1,200 crore including L1 stage orders of Rs 200 crore whereas its strike rate is 20-25%.The company is planning to include more of government contracts, which now include 20% of the total order book, and work for projects in sectors such as multi-level car parking projects, bus/railway terminal, airport projects, urban infrastructure including solid waste management and sewage treatment plants. This will enable it to diversify its client base and reduce the risk of default.Finding a company that has a good track record, strong balance sheet and cash flows is the key to success in long term investing. It works across sectors. One such company in the construction sector is Ahluwalia Contracts. Though it is depending the real estate sector highly, it has a strong order book and the mix is expected to change for the better. While, the company's compound annual growth rate (CAGR) in sales stood at 31% and both operating profit and net profit posted an increase of 40% between the financial year 2000 and 2008. Besides, the company has been able to generate positive cash flows from operations in eight out of the past 10 fiscals. Also, its debt to equity ratio has remained less than one for the past few years. Going ahead, the company is expected to continue with its growth story.The stock looks cheap given the visibility in demand in the company's new target market segments and strong balance sheet position.A great buy at dips for long term investors.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner