 "Ahluwalia Contracts soars 10% on winning work order worth Rs 427 crore")
The company has secured an order for construction of civil, structure and external development work for retail block at plot no. LP-1B-02 at DIAL II, Aerocity, New Delhi worth of Rs 426.57 crore, Ahluwalia Contracts said in an exchange filing.
The order inflow during the current FY 2023-24 stands at Rs 4,177.83 crore till date, the company said.
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Ahluwalia Contracts is primarily engaged in the business of civil construction activities. The company has also diversified into developing and operating commercial complex under license arrangement and is also engaged in the real estate trading business.
Analysts expect the company shall be benefited in the medium term with thrust of government on healthcare and education sector along with reconstruction of marquee government buildings. The revival in capex from the private sector in the medium term shall also benefit the company in diversifying its revenue stream with relatively better profitability.
Besides, the company’s order book position is diversified geographically in 14 Indian states and Nepal, and the company has executed across various states, such as Bihar, Jammu and Kashmir, West Bengal, Delhi, Maharashtra, Uttar Pradesh and Uttarakhand. Furthermore, the company has reduced its exposure towards residential/real estate segment from private players and subsequently increased its exposure in other segments like hospitals and educational institutions, thereby leading to reduced counterparty risk.
CARE Ratings expects that Ahluwalia Contracts shall be benefited in the medium term with thrust of government on healthcare and education sector along with reconstruction of marquee government buildings. The revival in capex from the private sector in the medium term shall also benefit the company in diversifying its revenue stream with relatively better profitability, the rating agency had said in its rationale.