* Current order backlog stands at Rs60bn (3.6x of TTM revenue), which continues to remain impressive. Despite soft revenue booking in 1Q, the Management maintained FY20 revenue growth guidance at 15%.
* Having seen dismal order inflow of Rs47bn in FY19, AHLU witnessed order inflow of Rs4bn during 1QFY20 and is in L1 position in projects worth Rs7bn. However, as AHLU is currently bidding for projects worth Rs20bn, it has maintained order inflow guidance at Rs20bn for FY20E.
* We further believe that asset light business model; best in class return ratios and healthy balance sheet augur well for AHLU.
* We expect AHLU to report revenue and earnings CAGR of 15% and 22%, respectively through FY19-21E.
* At CMP, it trades at 15.3x and 12.5x for FY20E and FY21E earnings, respectively, which is attractive. We have BUY recommendation on the stock with a Target Price of Rs410.
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