Geojit's research report on Dilip Buildcon
Q3FY21 revenue grew by 3.6% YoY led by normalcy in operation and strong order book. EBITDA margin declined by 115bps YoY to 16.5% due to higher material cost while other expenses declined by 44% YoY. Order book remain healthy at Rs26,141cr (3x TTM revenue) supported by strong inflow of Rs15,831cr in 9MFY21, provides strong revenue visibility for the next three years. PAT de-grew by 13% YoY due to higher tax rate of 33.9% compared to base quarter and lower other income (-26% YoY). DBL is in the advance stage of monetising 12 HAM projects and expects cash flow of Rs 2,000cr over FY22 & FY23. We maintain Buy rating due to strong order book and positive economic activity.
Our TP of Rs753 based on a P/E of 13x FY23E EPS & HAM business at 0.3x P/B of invested equity.
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