Axis Direct is bullish on Dilip Buildcon has recommended Buy rating on the stock with a target price of Rs 765 in its research report dated 04 September 2017.
Axis Direct's research report on Dilip Buildcon
Dilip Buildcon (DBL) has signed an agreement with Shrem Group for sale of its entire BOT portfolio (14 operational, 4 under construction projects and 6 Hybrid Annuity Model (HAM) projects) at an equity value of Rs 16 bn and enterprise value of ~Rs 105 bn. DBL has invested (equity and sub-debt) Rs 6.8 bn in operational and under construction assets, while an amount of Rs 8.4 bn is yet to be invested. The transaction values BOT portfolio at ~1.05x book value.
We also raise our target multiple to 15x (12x earlier) to account for improved growth outlook and RoCE of the business. Our revised TP stands at Rs 765 (15x FY19E EPS) vs. Rs 610 earlier.
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