In a recent filing with the exchange on 27th March, Dilip Buildcon Ltd announced that it has been declared as the L-1 bidder for a tender that was floated by the National Highways Authority of India (NHAI) on a hybrid annuity basis (HAM). The filing further mentioned that the project is pertaining to the development of six-lane access controlled greenfield highway from Audireddipalle to Mallapalle of the Bengaluru – Vijayawada economic corridor on HAM mode under Bharatmala Pariyojana Phase-I (Package -7) in the state of Andhra Pradesh.
The project is said to be worth approximately Rs 780 crores and the same is to be constructed within 24 months and operated for a period of 15 years from the date of commencement of operations.
Dilip Buildcon Ltd stock opened its trading hour today at a price of Rs 178.80 and currently trades at Rs 188. The scrip is up around 7 percent as compared to the previous closing levels of Rs 175.80. The stock witnessed intra-day high levels at Rs 193.40 showing an upside of around 10 percent.
The company operates as a road construction company in the country developing infrastructure facilities on an engineering, procurement, and construction basis and takes contracts from the government, other parties, and special-purpose vehicles. It has two business segments namely EPC Projects and Road Infrastructure Maintenance & Toll operations. The company derives the majority of its revenue from the EPC projects segment.
The company has seen a reduction in revenues from Rs 2,596 crores in Q2 to Rs 2,322 crores in Q3. Efficient operations and sourcing income from other segments, the company was in a position to grow its net profits nearly 8.5 times from Rs 13 crores in Q2 to Rs 110 crores in Q3.
The debt to equity ratio of the company has also seen a downward trend on a YoY basis from 3.09 in FY20-21 to 2.47 in FY21-22.
As per the quarter ending December 2022, promoters hold a constant 70.15 percent stake. On the other hand, FIIs have consistently reduced their stake with the recent shift being from 6.31 percent in Q2 to 5.56 percent in Q3.
Written by Amit Madnani
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