Buy Dilip Buildcon, target price Rs 355: HDFC Securities

HDFC Securities has buy call on Dilip Buildcon with a target price of Rs 355. The current market price of Dilip Buildcon is Rs 215.8.

Dilip Buildcon, incorporated in the year 2006, is a Mid Cap company (having a market cap of Rs 3137.77 Crore) operating in Construction sector.

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


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 2350.89 Crore, down -9.69 % from last quarter Total Income of Rs 2603.11 Crore and up 4.07 % from last year same quarter Total Income of Rs 2258.94 Crore. Company has reported net profit after tax of Rs 110.25 Crore in latest quarter.

The company’s top management includes Mr.Dilip Suryavanshi, Mr.Devendra Jain, Dr.Amogh Kumar Gupta, Mr.Satish Chandra Pandey, Ms.Ratna Dharashree Vishwanathan, Mr.Ashwini Verma, Mr.Malay Mukherjee, Mr.Vijay Chhibber. Company has Mukund M Chitale & Co. as its auditors. As on 31-12-2022, the company has a total of 15 Crore shares outstanding.

Investment Rationale
The company reiterated its FY23 revenue guidance at INR 100bn. However, expects EBITDA margin to be in the range of 11%, lower than the guidance of 12-14%. The standalone net debt as of Dec’22 stood at INR 25.9bn vs. INR 27.1bn as of Sep’22. It expects net debt at INR 24bn by Mar’23.

Promoter/FII Holdings
Promoters held 70.15 per cent stake in the company as of 31-Dec-2022, while FIIs owned 5.56 per cent, DIIs 9.1 per cent.