Ahluwalia Contracts Adjusts Valuation Grade Amid Competitive Capital Goods Landscape

Ahluwalia Contracts (India), a small-cap player in the capital goods sector, has recently undergone a valuation adjustment. The company currently exhibits a price-to-earnings (PE) ratio of 25.40 and a price-to-book value of 2.64. Its enterprise value to EBITDA stands at 11.51, while the EV to EBIT is recorded at 15.21. The firm also shows a robust return on capital employed (ROCE) of 28.31% and a return on equity (ROE) of 11.68%.
In comparison to its peers, Ahluwalia Contracts maintains a competitive position, particularly against companies like J Kumar Infra and Bharat Bijlee, which also hold attractive valuations. However, firms such as TD Power Systems and Indo Tech. Trans. are positioned at a higher valuation level, indicating a varied landscape within the industry.

Despite facing challenges reflected in its year-to-date return of -35.68%, the company has shown resilience over longer periods, with a three-year return of 63.27%. This performance highlights the differing trajectories among capital goods companies, emphasizing the importance of evaluating individual metrics and market conditions.