Ahlada engineers limited

Ahlada is a Hyderabad based company started in 2005 and went public in 2018 as AHLADA ENGINEERS LIMITED.

Company Summary:

  1. Manufacturing steel doors, windows (steel-frame), clean room equipment and water purifying (stainless steel) equipment.
  2. 3 manufacturing units, one assembling unit and stock yard in Hyderabad. Currently company have an installed capacity to manufacture 30,000 doors per month.
  3. For steel door segment company main client is TATA STEEL, in 2017 company signed Master Manufacturing and Supply Agreement (MMSA) with Tata Steel Limited (TSL), whereby TSL has assured off take of doors manufactured.
  4. TATA STEEL has a brand TATA PARVESH which offer a complete range of home solutions-from steel doors to windows with inclusion of ventilators. Ahlada supplies steel doors as part of the MMSA.
  5. Customer focus for clean room equipment is in the pharmaceutical, biotechnology and food industries.
  6. 50.36% promoter holding in the company as per 20-21 annual report. Ch. Suresh Mohan Reddy is the Managing Director.

Key Numbers (source stockedge and screener):

marcap: 251 cr
Net profit: 3.21cr and PAT: 10cr as of march2021
Debt to equity ratio: 0.32
ROE: 6% and ROCE: 11% as of march2021
PAT: 10Cr (march21)
March21 Qtr Net profit: 3.21cr

Below is the extract from Annual report (2018-19) regarding MMSA with TATA STEEL:

The Agreement shall commence on the Effective Date and shall continue for a period from such date (the “InitialTerm” of the Agreement) commencing from August 22, 2017 up to July 31, 2021 unless terminated pursuant to the Agreement. The Agreement shall stand automatically extended for an additional period up to June 30, 2022 (being the “Extension Period”), on the same terms and conditions contained in the Agreement. The Agreement may be renewed for a further period not less than 4 years and 11 months i.e from 1st July 2022 to 30th May 2027 (Renewed Period).

Peers details and CMP:

CenturyPly: 420
Green Ply: 195
DuroPly: 108
National Plywood: 6
KitPly: NA

Key Points to note:

  1. All the peer companies are into wood related door manufacturing except Ahlada which is into Steel door.
  2. Dont see any other corporate tie-ups apart from TATA Steel which looks to be the main source of income for the company.
  3. Steel doors are not widely accepted in residential construction space.
  4. No pan-India market.



@Pradeep_MSN Don’t you think they have formidable competitor in APL Apollo Tricoat.


i have met managment twice and have visited plants too. but my personal opinion is that its like job work. they are completly depends on TATA , they just do job work and get fixed return on works done. TATA branded the product and selling . naturally as they spend on marketing and branding they get fat margin and not ahlada.
also at that time other competitor were being finalised with tata in north region .but i had
stopped tracking . also if i remember the all the plants they dont own . some were on rent.
i didnt find anything that exciting in company .

this is my personal view. i have not invested nor tracking