Dolat Capital recommended accumulate rating on Dilip Buildcon with a target price of Rs 692 in its research report dated April 09, 2019.
Dolat Capital's research report on Dilip Buildcon
We maintain our revenue, EBITDA margins and Adj. PAT estimates for FY19E, FY20E and FY21E as DBL maintains its Q3FY19 guidance. We will revisit our estimates post Q4FY19 results. However, we expect reduction in revenue visibility (order book to TTM revenue) from 2.5x (Q3FY19) to ~1.6x (Q2FY20E) will become a concern considering no order inflow during 1HFY20E. Currently, we expect DBL’s revenue/ Adj.
APT to grow at muted CAGR of 14.0%/ 15.8% over FY19-21E. The stock has rose sharply by more than 80% (during last 2 months) post our Q3FY19 result update note (8 Feb’19). Thus, we downgrade to Accumulate with a revised SOTP of `692 (Exhibit 1).
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