Ahluwalia Contr. (AHLUCONT)
CyclicalFairStock Score: 37/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹837.35 |
| Market Cap | ₹5,609.2 Cr |
| P/E Ratio | 21.1 |
| ROCE | 18.47% |
| ROE | 19.1% |
| Dividend Yield | 0.07% |
| Profit Growth | -79.7% |
| Debt/Equity | 0.04 |
| Sales Growth | 12% |
| Promoter Holding | 55.32% |
| 52-Week Range | ₹582.1 — ₹1,077.95 |
| Sector | Construction |
| Book Value | ₹307.25 |
Strengths
- Near zero leverage with Debt/Equity of 0.04
- High return generation: ROE 19.10% and ROCE 18.47%
- Promoter holding 55.32% aligns interests
- Piotroski F-Score 7/9 indicates solid financial health
- Positive but moderate growth: sales +11.42%, profit +9.19%
Concerns
- Valuation rich: P/E 19.37 and P/B 3.60 given moderate growth
- Thin net margin: latest quarter ₹54 Cr profit on ₹1,061 Cr sales (~5%)
- Dividend yield only 0.08%, so returns depend on capital gains
- FairStock Score 33/100 flags risk; PEG 1.88 suggests growth is not cheap
AI Analysis
When I look at a business, I first ask whether it earns a good return and whether I can predict its future. Ahluwalia Contr. clears the first hurdle: ROE of 19.10% and ROCE of 18.47% are respectable, and it carries almost no debt—debt-equity of just 0.04. Promoters own 55.32%, and a Piotroski score of 7/9 reinforces that the financial position is sound. Good, but not a wide-moat enterprise. Civil construction is a competitive, low-margin, project-driven business with limited pricing power. The latest quarter shows sales of ₹1,061 Cr and net profit of ₹54 Cr, which works out to a thin margin of about 5%. Growth is moderate: sales up 11.42%, profit up 9.19%. That is decent, but not spectacular. Now the price. At ₹887.10, I am paying a market cap of ₹5,176 Cr, or 19.37 times earnings and 3.60 times book value. For a company earning single-digit to low-double-digit growth, that is no bargain. The PEG ratio of 1.88 tells me the growth is already in the price. The dividend yield is negligible at 0.08%, so I am not being paid to wait. Graham always insisted on a margin of safety; here the FairStock score labels it risky at 33/100, and I have to agree. The balance sheet is conservative and management seems careful, but at this valuation the margin of safety is missing. A good company can be a bad investment at the wrong price. This looks like a well-managed cyclical construction name, not a compounder I must own today. I would put it on the watchlist and wait for a better entry point.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer