Anand Rathi retains buy on Dilip Buildcon, target price Rs 586

Anand Rathi has retained buy rating on Dilip Buildcon in the long term with a target price of Rs 586. The stock ended up 7.2% at Rs 455.80 on Wednesday while the BSE Sensex closed 125.37 up at 37,270.82.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 2436.44 crore, down -5.26% from last quarter sales of Rs 2571.64 crore and down -3.42 % from last year same quarter sales of Rs 2522.60 crore. The company has reported net profit after tax of Rs 100.28 crore in the latest quarter.


Investment Rationale

To monetise five of its 12 newer hybrid annuity projects, Dilip Buildcon has executed an agreement with Cube Highways, the brokerage said. This is in sync with its strategy to focus on its strength as an EPC contractor rather than as an asset holder, the brokerage said.