Buy Dilip Buildcon; target of Rs 1338: Axis Direct

Axis Direct's research report on Dilip Buildcon

Dilip Buildcon’s (DBL) Q3FY18 sales grew 40% YoY to Rs 19.4 bn, ahead of our estimate of Rs 18.1 bn and consensus estimate of Rs 17.7 bn. EBITDA was up 24% YoY at Rs 3.4 bn and 6% above our estimate. EBITDA margin was down ~230 bps YoY at 17.7%. PAT came in at ~Rs 1.7 bn (up 52% YoY) on negligible tax rate.

Outlook

We increase our FY18 EPS to Rs 53 (vs. Rs 46 earlier) given the strong execution in Q3. We maintain our FY19 EPS at Rs 66 and introduce FY20 EPS at Rs 74 (driven by 20% topline growth and stable margin). We roll forward to FY20. Our revised TP stands at Rs 1,338 (18x FY20E EPS) vs. Rs 1,227. For all recommendations report, click here

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