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IDBI Capital Report
Dilip Buildcon Ltd. Q1 FY25 (standalone) profit after tax came below our and consensus estimate. Revenue was impacted due to delay in ordering, central elections and peak monsoon in certain geographies. Dilip Buildcon has revised the revenue guidance to - 5% de-growth with Ebitda margins to 11-12% (earlier 12-14%).
Order book of Rs 186 billion, equals to 1.8 times trailing twelve months revenue. Company guides order inflow of Rs 150- 160 billion for FY25 and has declared L1 for projects worth Rs 21 billion in Q1 FY25.
Dilip Buildcon maintains its focus on debt reduction and will reach net Debt free position by FY26; reduction will be done through mix of internal accruals, divestment proceeds and working capital days reduction.
We have retained our Hold rating on the stock with revised target price of Rs 563 on 18 times FY26E earnings per share. Stock catalyst remains stable execution and diversification.
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