Dilip Buildcon - Q3 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs 609, Upside 16%)

- Our View - The Company has won orders worth ~Rs.150 bn during YTD FY21 and is sitting on robust order book of Rs.261 bn. The massive order pipeline would mean further order inflows in the next few months. Taking all the factors into consideration, execution is set to pick up well in FY22 and beyond with healthy margins. Company's focus to bid only for well-funded projects would augur well over the long term. Constant focus on asset monetization would help keep the balance sheet under comfort zone. We upgrade our FY22 numbers to incorporate the strong Q3 performance. We roll forward our estimates to FY23 and maintain our BUY rating on the stock for revised target price of Rs.609.

- Revenue guidance - FY21 will be at ~FY20 levels while 15-20% growth expected for FY22/FY23 on the back of strong orderbook.

- Order book and Bid Pipeline - Total Order Book stands at Rs.261.4 bn of which road segment forms ~44%, Irrigation 18.4% and Mining 16.1%. Bid for Rs.200 bn projects in Road segment of which Rs60 bn is on EPC segment. Expects to receive 50-70 bn orders to achieve the guidance of ~Rs.300 bn orderbook by year end.

Shares of Dilip Buildcon Ltd was last trading in BSE at Rs.555.95 as compared to the previous close of Rs. 522.45. The total number of shares traded during the day was 31043 in over 1381 trades.

The stock hit an intraday high of Rs. 564.85 and intraday low of 530. The net turnover during the day was Rs. 17137219.

Source : Equity Bulls

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