Buy Dilip Buildcon, target price Rs 340: HDFC Securities

HDFC Securities has buy call on Dilip Buildcon with a target price of Rs 340. The current market price of Dilip Buildcon Ltd. is Rs 236.6.

Dilip Buildcon Ltd., incorporated in the year 2006, is a Mid Cap company (having a market cap of Rs 3369.52 Crore) operating in Construction sector.

Dilip Buildcon Ltd. key Products/Revenue Segments include Contract Revenue and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 2603.11 Crore, down -10.43 % from last quarter Total Income of Rs 2906.23 Crore and up 17.07 % from last year same quarter Total Income of Rs 2223.61 Crore. Company reported net profit after tax of Rs 13.02 Crore in latest quarter.

Investment Rationale
DBL expects to receive INR 3-5bn through monetisation during the rest of H2FY23. The cash component has increased from INR 6.2bn to INR 7-7.5bn in the Shrem InVIT deal. It has recalibrated EPS estimates higher to factor in margin recovery, robust OB growth, and debt reduction. As it rolls over estimates, it maintains BUY with SOTP-based TP of INR 340/sh (12x Sep-24E EPS).

Promoter/FII Holdings
Promoters held 70.15 per cent stake in the company as of 30-Sep-2022, while FIIs owned 6.35 per cent, DIIs 9.12 per cent.