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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Ahluwalia Contracts (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:34 am

Market Cap 7,422 Cr.
Current Price 1,108
High / Low1,542/649
Stock P/E34.6
Book Value 239
Dividend Yield0.05 %
ROCE23.8 %
ROE16.4 %
Face Value 2.00
PEG Ratio1.23

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Ahluwalia Contracts (India) Ltd

Competitors of Ahluwalia Contracts (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HB Estate Developers Ltd 195 Cr. 100125/39.032.4 76.60.00 %7.00 %2.39 % 10.0
Hazoor Multi Projects Ltd 1,018 Cr. 540639/11516.2 1270.56 %%% 10.0
Gyan Developers & Builders Ltd 4.99 Cr. 16.633.8/6.4226.2 12.70.00 %4.02 %3.75 % 10.0
GG Dandekar Properties Ltd 62.8 Cr. 132163/67.0 98.60.00 %1.27 %9.45 % 1.00
ETT Ltd 17.7 Cr. 17.138.8/14.49.49 34.80.00 %6.64 %4.85 % 10.0
Industry Average11,557.90N/A32.44N/AN/A23.3815.01N/A

All Competitor Stocks of Ahluwalia Contracts (India) Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales5806986847316096237438637649021,0261,164919
Expenses5206356146675495616727536818129151,059859
Operating Profit60636964616271110839011210460
OPM %10%9%10%9%10%10%10%13%11%10%11%9%7%
Other Income67511777978920711
Interest11121110877111111121415
Depreciation88989911101213142915
Profit before tax465055575152609867749526941
Tax %25%28%24%25%27%25%25%26%26%25%26%26%26%
Net Profit353642423839457250557120031
EPS in Rs5.195.346.326.325.645.846.7210.777.428.2610.5529.834.56

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4461,4319611,0601,2501,4271,6471,7551,8851,9822,6922,8383,271
Expenses1,4221,4629259451,0891,2541,4271,5381,7321,8282,4352,5342,918
Operating Profit24-3236115161173219216153154257304354
OPM %2%-2%4%11%13%12%13%12%8%8%10%11%11%
Other Income63837111386101022283031
Interest31373939352725193543443341
Depreciation47401221202426283230343946
Profit before tax-48-71226711913117517997103208262299
Tax %4%0%0%4%29%34%34%35%33%25%26%26%
Net Profit-46-71226484861151176477155194222
EPS in Rs-7.39-11.363.469.5612.6012.8417.2317.519.6111.5223.1728.9633.12
Dividend Payout %0%0%0%0%0%0%2%2%0%0%1%1%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-54.35%130.99%190.91%31.25%2.38%33.72%1.74%-45.30%20.31%101.30%25.16%
Change in YoY Net Profit Growth (%)0.00%185.33%59.92%-159.66%-28.87%31.34%-31.98%-47.04%65.61%80.99%-76.14%

Ahluwalia Contracts (India) Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:15%
5 Years:17%
3 Years:25%
TTM:34%
Compounded Profit Growth
10 Years:55%
5 Years:15%
3 Years:44%
TTM:4%
Stock Price CAGR
10 Years:22%
5 Years:32%
3 Years:44%
1 Year:55%
Return on Equity
10 Years:16%
5 Years:14%
3 Years:17%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital131313131313131313131313
Reserves1922143244094956087247898651,0221,2151,587
Borrowings27423917314290306191685458105
Other Liabilities5955865325936376016898651,1149571,2071,490
Total Liabilities1,0741,0501,0421,1571,2351,2521,4881,7592,0612,0462,4933,195
Fixed Assets160136121118198190191226235228293337
CWIP4269798510000017
Investments000000000000
Other Assets8728468419541,0361,0621,2961,5331,8261,8182,1992,851
Total Assets1,0741,0501,0421,1571,2351,2521,4881,7592,0612,0462,4933,195

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -10219377126818611025966301257
Cash from Investing Activity 103321-25-9-20-43-46-48-101-166-310
Cash from Financing Activity -7-69-98-57-70-7019-36-51-44-1621
Net Cash Flow-7-1516-648-86227160-79120-31

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow24.00-306.00-203.00-58.0019.0083.00189.00155.0062.0086.00203.00246.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1071541441461321251089669607871
Inventory Days74138112123101917190119726563
Days Payable135233182177177182202212257183180139
Cash Conversion Cycle465874925534-23-27-69-52-37-6
Working Capital Days113737685448634935333965
ROCE %-11%8%22%29%27%32%27%16%16%25%25%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters55.32%55.32%55.32%55.32%55.32%55.32%55.32%55.32%55.32%55.32%55.32%55.32%
FIIs12.15%12.34%12.31%12.28%12.30%12.19%11.50%11.75%12.60%12.66%13.32%13.25%
DIIs28.73%28.03%27.81%27.52%27.45%27.19%27.97%27.40%26.65%26.40%26.04%25.32%
Public3.80%4.32%4.56%4.89%4.94%5.31%5.21%5.55%5.43%5.61%5.32%6.11%
No. of Shareholders9,44910,46410,18610,70110,55511,86911,09712,65312,79215,72319,87625,169

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Small Cap Fund4,500,0001.61368.354,500,0002024-10-100%
Axis Small Cap Fund3,931,5331.8321.824,500,0002024-10-10-12.63%
Aditya Birla Sun Life Multi-Cap Fund604,3051.0649.474,500,0002024-10-10-86.57%
Edelweiss Small Cap Fund540,8511.5844.274,500,0002024-10-10-87.98%
SBI Infrastructure Fund450,0002.3336.834,500,0002024-10-10-90%
Bandhan Infrastructure Fund431,2383.8529.34,500,0002024-10-10-90.42%
Aditya Birla Sun Life Infrastructure Fund218,4272.2217.884,500,0002024-10-10-95.15%
Motilal Oswal Nifty Microcap 250 Index Fund33,3650.482.734,500,0002024-10-10-99.26%
HSBC Infrastructure Equity Fund - OLD32,5371.171.424,500,0002024-10-10-99.28%
Groww Nifty Total Market Index Fund820.020.014,500,0002024-10-10-100%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)55.9528.9623.1711.529.61
Diluted EPS (Rs.)55.9528.9623.1711.529.61
Cash EPS (Rs.)66.0334.7728.1816.0714.37
Book Value[Excl.RevalReserv]/Share (Rs.)238.84183.37154.53131.18119.85
Book Value[Incl.RevalReserv]/Share (Rs.)238.84183.37154.53131.18119.85
Revenue From Operations / Share (Rs.)575.52423.72401.93295.90281.38
PBDIT / Share (Rs.)63.4749.8142.6526.3524.39
PBIT / Share (Rs.)53.4844.0237.6421.8119.64
PBT / Share (Rs.)75.4139.0831.1115.4514.41
Net Profit / Share (Rs.)56.0528.9823.1711.529.61
NP After MI And SOA / Share (Rs.)55.9528.9623.1711.529.61
PBDIT Margin (%)11.0211.7510.618.908.66
PBIT Margin (%)9.2910.389.367.366.97
PBT Margin (%)13.109.227.735.225.12
Net Profit Margin (%)9.736.835.763.893.41
NP After MI And SOA Margin (%)9.726.835.763.893.41
Return on Networth / Equity (%)23.4215.7914.998.788.02
Return on Capital Employeed (%)18.0921.4121.6513.4214.25
Return On Assets (%)11.737.777.583.743.66
Total Debt / Equity (X)0.020.000.000.010.05
Asset Turnover Ratio (%)1.361.251.311.041.16
Current Ratio (X)2.171.801.771.601.54
Quick Ratio (X)1.911.581.491.301.27
Inventory Turnover Ratio (X)6.575.604.603.554.08
Dividend Payout Ratio (NP) (%)0.001.030.000.000.00
Dividend Payout Ratio (CP) (%)0.000.860.000.000.00
Earning Retention Ratio (%)0.0098.970.000.000.00
Cash Earning Retention Ratio (%)0.0099.140.000.000.00
Interest Coverage Ratio (X)8.8310.096.534.144.67
Interest Coverage Ratio (Post Tax) (X)4.756.874.552.812.84
Enterprise Value (Cr.)6097.023286.172720.081602.571008.88
EV / Net Operating Revenue (X)1.581.161.010.800.53
EV / EBITDA (X)14.349.859.529.086.17
MarketCap / Net Operating Revenue (X)1.771.361.171.010.63
Retention Ratios (%)0.0098.960.000.000.00
Price / BV (X)4.273.153.052.281.50
Price / Net Operating Revenue (X)1.771.361.171.010.63
EarningsYield0.050.050.040.030.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ahluwalia Contracts (India) Ltd as of October 11, 2024 is: ₹1,356.86

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 11, 2024, Ahluwalia Contracts (India) Ltd is Undervalued by 22.46% compared to the current share price ₹1,108.00

Intrinsic Value of Ahluwalia Contracts (India) Ltd as of October 11, 2024 is: ₹1,737.83

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 11, 2024, Ahluwalia Contracts (India) Ltd is Undervalued by 56.84% compared to the current share price ₹1,108.00

Last 5 Year EPS CAGR: 28.08%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.00%, which is a positive sign.
  2. The company has higher reserves (703.67 cr) compared to borrowings (115.42 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (75.15 cr) and profit (118.69 cr) over the years.
  1. The stock has a high average Working Capital Days of 44.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 12.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Ahluwalia Contracts (India) Ltd:
    1. Net Profit Margin: 9.73%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 18.09% (Industry Average ROCE: 23.38%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 23.42% (Industry Average ROE: 15.01%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.75
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.91
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 34.6 (Industry average Stock P/E: 32.44)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Ahluwalia Contracts (India) Ltd. is a Public Limited Listed company incorporated on 02/06/1979 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L45101DL1979PLC009654 and registration number is 009654. Currently Company is involved in the business activities of Construction of buildings. Company’s Total Operating Revenue is Rs. 2692.47 Cr. and Equity Capital is Rs. 13.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Construction, Contracting & EngineeringA-177, Okhla Industrial Area, New Delhi Delhi 110020mail@acilnet.com
http://www.acilnet.com
Management
NamePosition Held
Mr. Bikramjit AhluwaliaManaging Director
Mr. Shobhit UppalDeputy Managing Director
Mr. Vikas AhluwaliaWhole Time Director
Mr. Sanjiv SharmaWhole Time Director
Mr. Rajendra Prashad GuptaIndependent Director
Dr. Sheela BhideIndependent Director
Mr. Ashok KhuranaIndependent Director
Mr. Sunil Kumar SachdevaIndependent Director

FAQ

What is the latest fair value of Ahluwalia Contracts (India) Ltd?

The latest fair value of Ahluwalia Contracts (India) Ltd is ₹1356.86.

What is the Market Cap of Ahluwalia Contracts (India) Ltd?

The Market Cap of Ahluwalia Contracts (India) Ltd is 7,422 Cr..

What is the current Stock Price of Ahluwalia Contracts (India) Ltd as on 11 October 2024?

The current stock price of Ahluwalia Contracts (India) Ltd as on 11 October 2024 is ₹1,108.

What is the High / Low of Ahluwalia Contracts (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ahluwalia Contracts (India) Ltd stocks is 1,542/649.

What is the Stock P/E of Ahluwalia Contracts (India) Ltd?

The Stock P/E of Ahluwalia Contracts (India) Ltd is 34.6.

What is the Book Value of Ahluwalia Contracts (India) Ltd?

The Book Value of Ahluwalia Contracts (India) Ltd is 239.

What is the Dividend Yield of Ahluwalia Contracts (India) Ltd?

The Dividend Yield of Ahluwalia Contracts (India) Ltd is 0.05 %.

What is the ROCE of Ahluwalia Contracts (India) Ltd?

The ROCE of Ahluwalia Contracts (India) Ltd is 23.8 %.

What is the ROE of Ahluwalia Contracts (India) Ltd?

The ROE of Ahluwalia Contracts (India) Ltd is 16.4 %.

What is the Face Value of Ahluwalia Contracts (India) Ltd?

The Face Value of Ahluwalia Contracts (India) Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Ahluwalia Contracts (India) Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE