The shares of this small cap stock, engaged in the business of development of infrastructure facilities on an EPC basis jumped nearly 6 percent on Thursday after bagging an order of Rs 2,600 crore from Bharat Sanchar Nigam Limited (BSNL).
Stock Performance
With a market capitalization of Rs 7,022.71 crore, Dilip Buildcon Ltd surged 6 percent in Thursday’s trading session and made an intraday high of Rs 481.20 per share compared to its previous closing price of Rs 454.60 per share.
What Happened
Through an exchange filing, Dilip Buildcon Ltd reported that the DBL-STL Consortium received the Advanced Work Order from Bharat Sanchar Nigam Limited (BSNL) for the BSNL Bharat Net Phase III Broadband Connectivity Project.
The scope of this order involves the Design, Supply, Construction, Installation, Upgradation, Operation and Maintenance of middle mile and last mile network connectivity in Jammu & Kashmir and Ladakh.
The contract valued at Rs 2,631.14 crore includes a 3-year time period for construction and 10-year period of maintenance contract. The portion of Dilip Buildcon in this project is 70.23 percent.
Company Overview
Dilip Buildcon Limited is primarily engaged in the business of development of infrastructure facilities on an EPC basis. It operates in two key segments EPC projects and road infrastructure maintenance & annuity projects. The company specializes in developing roads, highways, sewage treatment plants, dams, metro rails, airports, mining projects, irrigation systems, tunnels, special bridges, commercial buildings, and urban infrastructure.
Financials
When looking at the financial statements, the company reported a 10 percent decline in its revenue from Rs 2,877 crore in Q3 FY24 to Rs 2,590 crore in Q3 FY25. The net profits however grew by 40 percent from Rs 113 crore to Rs 158 crore during the same period.
Order Book Analysis
As of December 2024, the company’s total order book value stands at Rs 16,626 crore. The majority of the order book comes from road, mining and irrigation projects. About 77 percent of the orders come from EPC while the remaining 23 percent comes from HAM based projects.
Written by Shwetha Sairam
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