'Sell' Dilip Buildcon Shares, Maintains Dolat Capital On Below Estimate Q1 Results — Check Target Price

Dilip Buildcon’s partnership with Alpha Alternatives will lead to a significant inflow of ~Rs 20 billion through 10% equity dilution of Rs 5.3 billion and 26% HAM stake sale in 18 projects worth Rs14.8 billion.

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Dolat Capital Report

Dilip Buildcon Ltd.’s Q1 FY26 results were below estimates, however, Ebitda margin was in line with our estimates

We expect revenue/adjusted profit after tax compound annual growth rate of 1.1%/50.8% over FY25-27E, with Ebitda margin of 10.4%/10.4% for FY26E/FY27E.

We maintain our FY26E/FY27E EPS estimates. Given muted performance in the core construction business, we maintain our ‘Sell’ rating with revised SOTP-based target price of Rs 435 (7x FY27E EPS + 1.8x FY27E P/BV for hybrid-annuity model equity investment + 4x FY27E P/BV for MDO equity investment).

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