Equity Research of NSE : DBL, with a target of at least 2x for lon-term

1. Dilip Buildcon
CMP : 425
BUY

2. Strength
• Dilip Buildcon is into infrastructure business. It operates through
construction and engineering segment
• It has a Pan India presence and completed 47 projects in last 5 year
with revenue growth of ~38% CAGR on consolidated basis.
• Total revenue and PAT Grow 57% and 143% over 2014-15 numbers.
• Company's early project completion bonus is 25% of FY11-16
cumulative profit which shows strong commitment and can help
them win new projects.

3. Management
• Dilip Suryavanshi – Owner, Chairman and Managing director
• Mr. Suryavanshi is the owner and chairman of DBL with over 30 years of
experience in industry.
• Mr. Suryavanshi maintains liaison with govt. and also looks after strategic areas
related to tendering, bidding and planning the projects for the DBL.
• Under the guidance of Mr. Suryavanshi, DBL has won numerous awards and
recognition for its projects with the most recent accolade coming from World
Bank which awarded its Ahmedabad-Godhra project as the showcase project in
India.
• Promoters holdings are ~75%

4. • Dilip buildcon has 12,000+ Cr of net order book which is 3.5x of 2016
revenue, clearly indicate revenue visibility for next 3 years.
• Crisil has upgraded rating from A- to A/stable to A+/Stable for long
term facilities

5. Weakness
• Moderate Financial risk profile :
Company majorly diverted their debt into two part, 40% of debt has
been taken for Equipment Finance and remaining was to fund working
capital requirement.
As an EPC player with healthiest order book, working capital
requirement continues to be sizeable.