Buy Dilip Buildcon; target of Rs 355: HDFC Securities

HDFC Securities is bullish on Dilip Buildcon has recommended buy rating on the stock with a target price of Rs 355 in its research report dated February 10, 2023.

Broker Research

February 17, 2023 / 11:46 IST

26 Aug, 2025 12:21

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HDFC Securities' research report on Dilip Buildcon

Dilip Buildcon (DBL) reported revenue/EBITDA/PAT of INR 23.8/2.5/0.5bn (missing)/beating our estimates by 4.1/(9.6)/(0.6)%. EBITDA margin at 10.5% (+1,021bps/-106bps YoY/QoQ) was below our estimate of 12.1%, on account of lower than expected gross margin and under absorption of fixed costs. There was an exceptional profit of INR 467mn from transfer of all equity stake in its four HAM projects to Shrem InvIT. The Order book (OB), as of Dec’22, stood at INR 265.4bn (~3x FY22 revenue). For FY23TD, DBL has received 100bn of orders and expects to end the year with at most INR 120bn of total order inflow (OI). DBL reiterated its FY23 revenue guidance at INR 100bn. However, expects EBITDA margin to be in the range of 11%, lower than the guidance of 12-14%. The standalone net debt as of Dec’22 stood at INR 25.9bn vs. INR 27.1bn as of Sep’22. It expects net debt at INR 24bn by Mar’23.

Outlook

As we roll over our estimates, we maintain BUY with an increased SOTP-based TP of INR 355/sh (12x Dec24E EPS, 0.8x P/BV HAM equity investment).

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