The shares of the construction and infrastructure development company, Dilip Buildcon Ltd were trading at Rs Rs 207 levels in the early hours of Tuesday. The scrip was in focus after the company bagged an order worth Rs 1,947.06 Crore.
The company, through Dilip Buildcon Limited – Skyway Infraprojects Pvt. Ltd has received a letter of acceptance for a project from Madhya Pradesh Jal Nigam Maryadit, Bhopal. The completion period for the project is 24 months.
It entails Engineering, Procurement, Construction, Testing Commissioning, Trial Run and Operation, and Maintenance of Various Components of Rewa Bansagar MVS, District Rewa in a Single Package on a TumKey Job Basis including Trial Run and Operation & Maintenance of the Entire Water Supply Scheme for 10 Years.
Dilip Buildcon Limited (DBL) is in the business of the development of infrastructure facilities on an Engineering Procurement and Construction basis (EPC) and undertakes contracts from various Government and other parties and special purpose vehicles promoted by the Company.
In Q3FY23, their total revenue stood at Rs 2,322.44 Crore as compared to Rs 2,245.5 in the same period the year ago. Their net profit in the quarter stood at Rs 110.25 Crore compared to a loss of Rs 96.89 Crores in Q3FY22.
HDFC Securities is bullish on the stock and has a ‘Buy’ call with a target price of Rs 355 per share which represents an upside of 71% from the current levels.
The Order book (OB), as of Dec’22, stood at INR 265.4bn (~3x FY22 revenue). For FY23TD, DBL has received 100bn of orders and expects to end the year with at most INR 120bn of total order inflow (OI). DBL reiterated its FY23 revenue guidance at INR 100bn, the brokerage said in its report.
However, expects EBITDA margin to be in the range of 11%, lower than the guidance of 12-14%. The standalone net debt as of Dec’22 stood at INR 25.9bn vs. INR 27.1bn as of Sep’22. It expects net debt at INR 24bn by Mar’23, the brokerage added.
Written by Anoushka Roy
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