Ahluwalia Contracts (India) Ltd.
ISIN: INE758C01029 • Market Cap: ₹4,677 Cr
The 5-Pillar Quality Audit for Ahluwalia Contracts (India) Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (8.5%), Return on Capital Employed (14.7%), and equity compounding (11.2%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.01 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (18.2%) and 3Y PAT CAGR (5.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 20.78 vs PEG of 1.24 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 55.3%, backed by 36.4% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.01)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 18.2%)
Revenue has expanded at 18.2% CAGR over 3 years, signaling industry market-share gains.
Attractive Valuation Margin (P/E: 20.78)
Trading at a P/E multiple of 20.78, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (36.4%)
Mutual funds, domestic DIIs, and foreign FIIs hold 36.4%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Construction)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction space.
Quantitative Strategy Eligibility
Checking AHLUCONT against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 75/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Sector Peer Comparison
Compare AHLUCONT directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Ahluwalia Contracts (India) Ltd. (AHLUCONT)Current | 75/100 | ₹4,677 Cr | 20.78 | 14.7% | 0.01 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: Ahluwalia Contracts (India) Ltd.
Q:What is the 5-Pillar Fundamental Score for Ahluwalia Contracts (India) Ltd. (AHLUCONT)?
Ahluwalia Contracts (India) Ltd. has a RupeeTools Fundamental Score of 75/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (57/100), Financial Health (88/100), Growth (70/100), Valuation (82/100), and Ownership Quality (85/100).
Q:Is AHLUCONT fundamentally strong for long-term investment?
Yes, AHLUCONT exhibits solid fundamental strength with a 75/100 score, driven by a return on equity of 11.2% and a debt-to-equity ratio of 0.01.
Q:Does AHLUCONT pass the Coffee Can Investing filter?
No. AHLUCONT does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does AHLUCONT compare against other Construction peers?
Within India's Construction sector, AHLUCONT trades at a P/E of 20.78 and generates an ROCE of 14.7%. Compare its 5-Pillar score of 75/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.