Ahluwalia Contracts share price

Ahluwalia Contracts Shares Surge 7% After Securing ₹1,307 Crore Worth Orders

Ahluwalia Contracts (India) Ltd is making waves on the stock market! The company’s shares surged nearly 7% after bagging two massive orders worth ₹1,307 crore. With this impressive leap, the stock has rallied an astounding 61% in 2024 and 76% over the past year. Let’s dive into the details of this exciting development.

Major Contract Wins Propel Ahluwalia Contracts to New Highs

On Tuesday, shares of Ahluwalia Contracts soared 6.78% to ₹1,280 on the Bombay Stock Exchange (BSE). The catalyst for this surge? The company secured two significant orders, adding ₹1,307 crore to its already growing order book.

1. Order 1: The first contract, worth ₹1,144 crore, comes from Signatureglobal Business Park. This project involves civil structure, part MEP (Mechanical, Electrical, and Plumbing), and finishing works for all towers, basements, and ancillary buildings at Project De-luxe DXP, Gurugram. The contract is set to be executed over the next 48 months.
2. Order 2: The second order, valued at ₹163 crore, is for the Iconic Tower, Gurugram, under Signatureglobal Homes. Like the first contract, this project will also be completed within the next 48 months.

These contract wins have further boosted investor confidence, leading to the significant rise in Ahluwalia Contracts’ share price.

Ahluwalia Contracts: A Stock on Fire in 2024

With a 61% rally in 2024 alone, Ahluwalia Contracts is one of the hottest stocks in the construction sector this year. The stock has also surged by 76% in the past 12 months, making it a favorite among investors seeking high growth in the infrastructure and construction space.

The company’s robust order book and consistent contract wins have contributed to this stellar performance, despite challenges in maintaining margins.

Impressive Order Book Growth: ₹15,000 Crore and Counting!

Ahluwalia Contracts has seen rapid growth in its order book over the past year. In FY24, the company secured orders worth ₹6,540 crore, up from ₹5,100 crore in FY23. During the June quarter of FY24, it added ₹2,730 crore in new orders, boosting its order book to ₹13,100 crore.

In the most recent September quarter, Ahluwalia Contracts won an additional ₹2,050 crore in contracts, taking the unexecuted order book (without adjusting for execution in Q2FY25) to ₹15,000 crore. This excludes any fresh orders the company continues to secure.

Financial Performance: Strong Revenue, Weaker Margins

Despite strong revenue growth in the June quarter, Ahluwalia Contracts faced lower-than-expected margins, which tempered overall performance. Nonetheless, the company’s ability to consistently win large contracts and expand its order book positions it well for future growth.

Investors have shown continued optimism in the company’s long-term prospects, as reflected in its stock price rally and robust market demand for its services.

Conclusion:

Ahluwalia Contracts’ recent contract wins, coupled with its rapidly expanding order book, highlight the company’s strength in the construction industry. Despite facing challenges with margins, the company’s ability to secure large-scale projects demonstrates its solid reputation and capabilities. For investors, the 61% stock rally in 2024 underscores the growing confidence in Ahluwalia Contracts as a key player in the sector, and with a ₹15,000 crore unexecuted order book, the future looks bright.

FAQs

1.Who is the owner of Ahluwalia?

A. Bikramjit Ahluwalia, Founder Promoter and Presently Chairman & Managing Director of Ahluwalia Contracts (India) Limited (ACIL), aged 84 years, has been involved in the Construction activity for more than 56 years. Under Guidance of Mr.

2.What were the two major contracts that Ahluwalia Contracts secured?

A. The first contract, worth ₹1,144 crore, is for Project De-luxe DXP in Gurugram, and the second, valued at ₹163 crore, is for the Iconic Tower in Gurugram.

3.How much has Ahluwalia Contracts’ stock risen in 2024?

A. The stock has rallied 61% in 2024 so far.

4.What is the total order book of Ahluwalia Contracts?

A. The company’s order book currently stands at ₹15,000 crore.

5.What was the revenue performance of Ahluwalia Contracts in the June quarter?

A. Ahluwalia Contracts reported higher-than-expected revenue, but overall performance was impacted by lower margins.

6.How many new orders did Ahluwalia Contracts secure in FY24?

A. The company secured ₹6,540 crore worth of orders in FY24, up from ₹5,100 crore in FY23.

7.What was the size of the June quarter order book?

A. In the June quarter, the company’s order book reached ₹13,100 crore.

8.What is the value of the additional orders secured in the September quarter?

A. Ahluwalia Contracts secured an additional ₹2,050 crore worth of orders in the September quarter.

9.Which company awarded the two new contracts to Ahluwalia Contracts?

A. The contracts were awarded by Signatureglobal Business Park and Signatureglobal Homes.

10.What is the timeline for executing the new projects secured by Ahluwalia Contracts?

A. Both projects are expected to be executed over the next 48 months.

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