When it comes to investing in the stock market, one of the most important factors to consider is the performance of the company in question. One such company is Ahluwalia Contracts, a leading construction firm in India. With over 45 years in the industry, Ahluwalia Contracts has carved a niche for itself in the market, with a strong reputation for quality and timely delivery of projects.
But what about the performance of Ahluwalia Contracts` share price? Let`s take a closer look.
As of September 2021, Ahluwalia Contracts` share price is trading at around Rs. 325. This is a significant increase from its share price of around Rs. 80 in 2016. In fact, the company`s stock has been on a steady upward trajectory since then, barring a brief dip in 2020 due to the COVID-19 pandemic.
So, what has contributed to Ahluwalia Contracts` strong share price performance? One major factor is the company`s track record of successful projects. Ahluwalia Contracts has completed several high-profile projects across India, including the construction of the Delhi Metro and the Terminal 3 building at the Indira Gandhi International Airport in Delhi. These projects have helped cement the company`s reputation in the industry and attract further business opportunities.
Another factor is the company`s financial performance. In the last fiscal year, Ahluwalia Contracts reported a revenue of over Rs. 1,700 crore, a significant increase from the previous year. The company also reported a net profit of over Rs. 60 crore, a 70% increase from the previous year. These strong financial results have helped boost investor confidence in the company, leading to an increase in its share price.
Of course, as with any investment, there are risks associated with investing in Ahluwalia Contracts. The construction industry is highly competitive, and there is always the risk of projects being delayed or cancelled due to factors outside the company`s control. Additionally, changes in government policies or economic conditions could potentially impact the company`s performance.
Overall, however, Ahluwalia Contracts` track record of successful projects and strong financial performance make it an attractive investment opportunity for those looking to invest in the construction sector in India. As always, investors should conduct their due diligence and consult with a financial advisor before making any investment decisions.