Moneycontrol
Get App
Last Updated : May 14, 2019 05:16 PM IST | Source: Moneycontrol.com

Buy Dilip Buildcon; target of Rs 737: HDFC Securities

HDFC Securities is bullish on Dilip Buildcon has recommended buy rating on the stock with a target price of Rs 737 in its research report dated May 11, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on Dilip Buildcon


DBL reported 4QFY19 muted revenue of Rs 25.7bn (flat YoY, 5% miss). Delays in receiving appointed dates (AD) from NHAI resulted in lower execution. About 7 out of 12 HAM projects’ AD is yet to come (expected by 1HFY20E, ~Rs 68bn in EPC value, 32% of order book). EBITDA: Rs 4.5bn (3% miss). EBIDTA margins declined 99bps YoY to 17.5%. APAT: Rs 2.2bn was 14% miss, as early completion bonus on Lucknow Sultanpur project (~Rs 378mn) will be accounted during 1QFY20E (while we had expected the same to come in 4QFY19).


Outlook


We maintain BUY on DBL, with a reduced TP of Rs 737/sh (vs. Rs 833/sh earlier). We have cut our target EPC multiple from 13.5x to 12x to factor in the high debt, delay in receiving appointed dates for 32% of order book & limited visibility of monetization of under construction HAM projects.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
First Published on May 14, 2019 05:16 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant