Dolat Capital is bullish on Dilip Buildcon has recommended buy rating on the stock with a target price of Rs 1423 in its research report dated March 20, 2018.
Dolat Capital's research report on Dilip Buildcon
DBL with its differentiated business model that lays on project selection and execution with operational efficiency continues to remain one of the prime beneficiaries of Govt’s Bharatmala project (` 6.95tn). With its presence across 13 states of India (as on Mar’18) and signing of an agreement with Shrem Group (Aug’17) to exit 100% from its 24 BoT projects for ` 16bn, DBL is in much better placed to benefit from an upcoming pick up in the road awarding activity.
Outlook
We expect DBL to witness traction in revenue, best EBITDA margin among peers, superior net profit margin, comfortable working capital, robust order inflow and order book, robust FCFF, declining leverage, and improving healthy return ratios (RoE/ RoCE of 26.5%/ 29.4% by FY20E) over FY17-20E. Thus, we reiterate Buy on the stock with an upward revised SOTP of ` 1,423For all recommendations report, click here
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