Moneycontrol
Get App
Last Updated : Aug 13, 2019 12:57 PM IST | Source: Moneycontrol.com

Hold Dredging Corporation of India; target of Rs 360: ICICI Direct

ICICI Direct recommended hold rating on Dredging Corporation of India with a target price of Rs 360 in its research report dated August 09, 2019.

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

ICICI Direct's research report on Dredging Corporation of India


Dredging Corporation of India reported strong revenues for Q1FY20 led by higher revenues from dredging contract in Bangladesh. Further EBITDA margins came at ~16% levels, led by higher other expenses to sales ratio, mainly due to lower margins from the Bangladesh contract (due to sub-contracting). Subsequently, the absolute EBITDA and PAT de-grew 5% and 71% respectively due to the lower operational performance and higher depreciation expenses. Going forward, the management expects the cash inflow from SCI in Q4FY19 and its newer promoter structure to be beneficial for its working capital days going ahead.


Outlook


However, as concerns remain related to execution of ongoing projects and scaling up of the operations of the company by the consortium of the ports, we maintain HOLD on the stock, valuing it at Rs 360 (15x FY21E EPS).


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, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.
First Published on Aug 13, 2019 12:57 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant