Mehabe score: 4 G Factor: 2 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 4.
Description
Ahluwalia Contracts (India) is engaged in the business of construction activities.(Source : 201903 Annual Report Page No:17)Site:AHLUCONT
Market Cap:
Rs 2,221 cr
Price:
332.0
Trading pe:
48.0x
Book-value:
124/share
Div yield:
0.00 %
Earning yield:
4.91%
Face-value:
2.00/share
52week high:
335.00
52week low:
192.65
Technical Analysis
Stock trades at 332.0, above its 50dma 306.32. It also trades above its 200dma 280.44. The stock remains bullish on techicals
The 52 week high is at 335.00 and the 52week low is at 192.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Contingent liabilities of Rs.1273.94 Cr.
-Promoters have pledged 27.26% of their holding.
-Dividend payout has been low at 1.15% of profits over last 3 years
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 39.8x. Phoenix Mills trades at the industry’s max P/E of 265.89x. AHLUCONT trades at a P/E of 48.0x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 7.0. AHLUCONT has a G-Factor of 2 and Piotski scoreof 4.
– Average 1 month return for industry is 6.0%. The max 1- month return was given by NBCC: a return of 11.79 %
Quarterly Results
Sales for period ended Dec 2020 is Rs 536.0 cr compared to Rs 498.0 cr for period ended Dec 2019, a rise of 7.6%
Operating Profits reported at Rs 32.0 cr for period ended Dec 2020 vis-vis 44.0 for period ended Dec 2019 .
Operating Margins contracted -286.5 bps for period ended Dec 2020 vis-vis Dec 2019 .
The EPS for Dec 2020 was Rs 2.2 compared to Rs 2.68 for previous quarter ended Sep 2020 and Rs 3.15 for Dec 2019
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1770.0 cr for period ended TTM vis-vis sales of Rs 1885.0 cr for the period ended Mar 2020, a fall of 6.5%. The 3 year sales cagr stood at 2.4%.
Operating margins shrank to 6.0% for period ended TTM vis-vis 8.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 46.0 cr for period ended TTM vis-vis sales of Rs 64.0 cr for the period ended Mar 2020, falling 39.1%.
Company reported a poor Net Profit CAGR of -26.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 110.0 cr for period ended Mar 2020 vis-vis Rs 86.0 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 53% on a 1 Year basis vis-vis a return of -2% over the last 3 Years. – The compounded sales growth on a TTM bassis is 2% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is -44% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 11.98% vis-vis 11.62% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 3.86% vis-vis 4.51% for Dec 2020
Conclusion
– is almost debt free. – Contingent liabilities of Rs.1273.94 Cr.
-Promoters have pledged 27.26% of their holding.
-Dividend payout has been low at 1.15% of profits over last 3 years
-‘s cost of borrowing seems high
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 306.32 and is trading at 332.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
