Religare Capital has recommended 'Buy' on Ahluwalia Contracts (AHLU) after the company declared its second quarter results. The stock broker fixed price target at Rs 300.

Commenting on the results, Religare said, ''AHLU's Q2FY16 numbers were in line with estimates as revenue and PAT grew 17% YoY each to Rs 2.8 billion and Rs 191 million, fuelled by public sector orders even as the private sector continued to lag. EBITDA margins for the quarter at 12.5% were ahead of expectations on account of a better project mix.''

Commenting on the investment rationale, the stock broker said, ''We believe AHLU's strong order book at Rs 41.2 billion as of date offers revenue visibility till FY18 and the quality of order inflows coupled with reducing debt would help sustain profitability. Buy with a Mar'17 TP of Rs 300. Management expects to fetch a further Rs 6 billion of orders by FY16-end.'' 

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