Dolat Capital is bullish on Dilip Buildcon has recommended buy rating on the stock with a target price of Rs 1372 in its research report dated September 24, 2018.
Dolat Capital's research report on Dilip Buildcon
The annual report theme encompasses DBL’s foundation which is based on four major pillars viz. employees, equipments, experience and technology. DBL’s unique model of operation which is based on careful selection of projects, clustering, minute tracking, vertical integration, equipment ownership and dedicated full - time employees has helped them become one of the fastest gro wing infrastructure company in India . Along with orderbook addition, DBL’s focus will be on adding quality projects with higher margins. DBL will continue with its strategy of d iversifying into different regions and businesses to maximize their business volume and profit margins. DBL’s revenue / EBITDA/ Adj.PAT grew by 52 .0 % / 41.4%/ 75.3% YoY . EBITDA margins down 135 bps YoY to 18.1%. DBL received early completion bonus of ` 878 mn in FY18 and a total of ` 4 .04 bn between FY1 2 - 18.
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, d eclining leverage, and improving healthy return ratios (RoE/ RoCE of 26.1%/ 27.3% by FY20E) over FY18 - 20E. Thus, we maintain Buy on the stock with SOTP of ` 1,372 . (Exhibit 1).
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.
Read More