Ahluwalia Contracts Q4 Results Review: Dolat Capital Downgrades To 'Reduce', But Hikes Target Price

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Dolat Capital Report

Ahluwalia Contracts India Ltd.’s Q4 FY25 revenue was below our estimates, however, Ebitda margin and adjusted profit after tax were above estimates.

We expect revenue/APAT CAGR of 18.0%/33.9% over FY25-27E, with Ebitda margin of 10.0%/10.3% for FY26E/FY27E. We broadly maintain our FY26E/FY27E EPS estimates; however, post factoring APAT CAGR of 33.9% over FY25-FY27E (low base in FY25), we increase our PE multiple to 17 times vs earlier 16x.

The stock has run up by ~33% since our Q3 FY25 update note, hence, we downgrade our rating to ‘Reduce’ from Accumulate with a revised target price of Rs 917 (17x FY27E EPS).

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