Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Research

| More

Result Update: Dilip Buildcon Ltd - BUY - TP Rs.1276 - Kotak

Posted On: 2018-08-19 15:56:54

DBL results for the quarter were ahead of our estimates led by better than expected execution and margins. Better than expected order inflow during FY18 and a robust order book provides healthy visibility of future earnings and company expects to achieve Rs 100 bn of revenues in FY19.

Key highlights

- Revenue growth of 46.4% YoY for Q1FY19 stood ahead of our estimates. Operating margins witnessed a slight decline on sequential basis. Net profit performance stood ahead of our estimates due to strong execution and deferred tax benefits.

- Order inflow for the company stood healthy at Rs 27.4 bn during Q1FY19, taking the order book to Rs 241 bn. Healthy order inflows provide good visibility on revenue growth.

Valuation and outlook

- At current price of Rs 852, stock is trading at 14.2x/12.7x P/E and 7.9x/6.2x EV/EBITDA on FY19/20 respectively. We marginally reduce our valuation multiples to factor in delays in land acquisition process from the government side and the current liquidity crunch with the public sector banks in funding HAM projects. We now value the company at 18x FY20 earnings (20x earlier) and add value of the expected investments till FY20. We arrive at a revised price target of Rs 1276 and maintain BUY on the stock. We believe that DBL will continue to trade at premium multiples as compared to its peers owing to faster pace of execution, strong margins, excellent return ratios as well as lower leverage.

- Key risk to our recommendation would come from lower than expected order inflow or slower execution or delays in financial closure of HAM projects. Along with this, high asset base of equipment may pose a challenge in difficult times owing to high depreciation costs.

Shares of Dilip Buildcon Ltd was last trading in BSE at Rs.853.2 as compared to the previous close of Rs. 852.35. The total number of shares traded during the day was 25689 in over 1132 trades.

The stock hit an intraday high of Rs. 869 and intraday low of 852.4. The net turnover during the day was Rs. 22045466.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Polycab India surges higher: Angel Broking

TCS likely to outperform Infy in short-term: Angel Broking

Railway Vikas Nigam IPO Listing - Mr. Abhijeet Bajpai, Co-Founder, Avighna Trades

Polycab India Ltd: Angel Broking

Maruti to cut production to balance with demand: Angel Broking

BATA India Q3: Angel Broking

Result Update: Essel Propack Ltd - BUY - TP Rs.130 - Kotak

Result Update: Radico Khaitan Ltd - ACCUMULATE - TP Rs.460 - Kotak

Result Update: GHCL - ACCUMULATE - TP Rs.270 - Kotak

Initiating Coverage : JK Paper Limited - Buy - TP Rs.200 - Kotak

Result Update: Mirza International Ltd - BUY - TP Rs.104 - Kotak

Result Update: Asian Granito India Ltd - REDUCE - TP Rs.185 - Kotak

Result Update: Va Tech Wabag Ltd - BUY - TP Rs.378 - Kotak

Result Update: PNC Infratech Ltd - BUY - TP Rs.197 - Kotak

Result Update: KNR Constructions Ltd - BUY - TP Rs.235 - Kotak

Result Update: Talbros Automotive Ltd - BUY - TP Rs.400 - Kotak

Result Update: Sterling Tools Ltd - ACCUMULATE - TP Rs.361 - Kotak

Result Update: Engineers India Ltd - BUY - TP Rs.155 - Kotak

Result Update: Century Plyboards Ltd - BUY - TP Rs.232 - Kotak

Result Update: Eveready Industries India Ltd - BUY - TP Rs.310 - Kotak

Result Update: The Phoenix Mills Ltd - BUY - TP Rs.707 - Kotak

Result Update - Voltamp Ltd - BUY - TP Rs.1320 - Kotak

Result Update: Berger Paints Ltd - SELL - TP Rs.280 - Kotak

Company Visit Note: Ratnamani Metals & Tubes Ltd - NOT RATED - Kotak

Result Update: Insecticides India Ltd - BUY - TP Rs.643 - Kotak

Result Update: Nagarjuna Construction Company Ltd - BUY - TP Rs.135 - Kotak

Result Update: Shankara Building Products Ltd - BUY - TP Rs.1537 - Kotak

Result Update: Dollar Industries Ltd (DIL) - BUY - TP Rs.390 - Kotak

Result Update: Greenply Industries Ltd - ACCUMULATE - TP Rs.161 - Kotak

Result Update: Central Depository Services (India) Ltd - BUY - TP Rs.290 - Kotak

Result Update: Blue Star Ltd - BUY - TP Rs.655 - Kotak

Result Update: Bluedart Express Ltd - ACCUMULATE - TP Rs.2875 - Kotak

Result Update: Mahindra Holidays & Resorts Ltd - BUY - TP Rs.315 - Kotak

Result Update: GHCL - BUY - TP Rs.270 - Kotak

Result Update: NIIT Ltd - BUY - TP Rs.110 - Kotak

Result Update: Quess Corp Ltd - BUY - TP Rs.1072 - Kotak

Result Update: Praj Industries Ltd - REDUCE - TP Rs.108 - Kotak

Result Update: Supreme Industries Ltd - BUY - TP Rs.1205 - Kotak

Granules India Ltd Q2 consolidated PAT climbs to Rs. 60.26 crores

Result Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.485 - Kotak

Result Update: Zensar Technologies Ltd - ACCUMULATE - TP Rs.257 - Kotak

Bajaj Auto Ltd - OPM below estimate; Retain Accumulate - Emkay

Result Update: Bodal Chemicals Ltd - ACCUMULATE - TP Rs.130 - Kotak

Result Update: Kajaria Ceramics Ltd - BUY - TP Rs.500 - Kotak

Result Update: Persistent Systems Ltd - BUY - TP Rs.870 - Kotak

Auto Industry Volume Update: September 2018 - Kotak

Sector Update - Natural Gas - Kotak

Company Visit Note: Jindal Stainless Ltd - NOT RATED - Kotak

Company Update: Bajaj Electricals Ltd - ACCUMULATE - TP Rs.545 - Kotak

Telecom: 2QFY19 preview - no respite - Kotak







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019