HDFC Securities is bullish on Dilip Buildcon has recommended buy rating on the stock with a target price of Rs 833 in its research report dated April 08, 2019.
HDFC Securities' research report on Dilip Buildcon
We attended Dilip Buildcon Ltd. (DBL) Analyst Meet/Zuari Bridge Site Visit in Goa on 5th/6th April 2019. As per DBL this is the 2nd largest Cable Suspension bridge being built in India. This is a MORTH funded project with total length of 13.6km including an elevated road of 8km and a cable suspension bridge on Zuari River of 640m length. Rs 14bn is the total cost of all 3 packages and the project is expected to be completed by 5th Oct 2020, a delay of 18months.
DBL has got ‘Extension of Time’ for the same as there were delays owing to land acquisition; still about 5-10% land is not in possession. DBL is trading at an attractive valuation of 9.4x FY21E P/E. We maintain BUY with Rs 833/sh TP (13.5x FY21E EPS and BOT at 1x equity invested equity. With likely Rs 20bn advance receipt, debt may have peaked.
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