Buy Dilip Buildcon; target of Rs 711: Dolat Capital
Dolat Capital is bullish on Dilip Buildcon has recommended buy rating on the stock with a target price of Rs 711 in its research report dated November 15, 2018.
November 19, 2018 / 03:48 PM IST
Dolat Capital's research report on Dilip Buildcon
DBL’s standalone revenue up 2.7% YoY to `16.2 bn in Q2FY19 (16.7% below estimates) due to slower execution run rate in road (+4% YoY) segment affected by monsoon. EBITDA margin down 70 bps YoY to 17.3% (66 bps below estimates), primarily due to higher other expenses and employee costs which was partially offset by fall in raw material costs by 64 bps to 76.8% of revenue. Reported PAT decreased 28.0% YoY to `832 mn due to poor operating performance coupled with higher tax rate of 12.8% vs. (5.3%). DBL has received final sanction for 8 projects and in-principle sanction for 3 projects out of 12 HAM projects till date, balance 1 project is in final stage.
The stock has corrected sharply ~60% in last six months, thus, we maintain Buy with a downward revised SOTP of `711.
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