Thursday

15


October , 2020
DILIP BUILDCON LTD
17:43 pm

Rajesh Agarwal


DILIP BUILDCON LTD

COMPANY PROFILE

Incorporated in the year 2006, Bhopal based Dilip Buildcon Ltd (DBL) is one of the leading private sector infrastructures focused EPC (Engineering Procurement Construction) contractors in India. In the past five years, the company has completed construction of several road projects in Madhya Pradesh, Gujarat, Rajasthan and other states.The overall achievements of the company are due to the combined efforts of strong management and committed human resources as well as adept exploitation of enormous tools possessions.

CMD- Mr. Dilip Suryavanshi

Executive Director & CEO- Mr. Devendra Jain

KEY BUSINESS STRATEGIES

·        

The company being innovative focuses on usage of Drones and Unmanned Aerial Vehicles (UAVs) to reduce project time cost thereby improving safety. These equipments collect engineering data from the construction sites, monitor progress and potential safety hazards, and keeps pilferage and leakage under check.

 

·        

GPS (Global Positioning System) is used to track vehicle location history with real time alerts and notifications and at the same time is able to guide drivers and operators on the right path, enabling fuel savings of around 25% (app).

 

·        

“GeoGreen” is an initiative taken by DBL for environmental sustainability and to protect the soil from eroding because of road construction process, by planting thousands of trees. They are also engaged in soil stabilization which enhances properties of the soil and makes the available for usable. Various processes used by Dilip Buildcon Ltd; has been authorised by Road Construction Authorities of India.

 

·        

DBS is having a diversified work portfolio to keep pace with country’s infrastructure growth starting from roads and highways, rail and metros, airport, mining, irrigation, tunnel and special bridges to urban development for illustration Bhopal and Indor Metro Rail Project, Churhat Bypass Tunnel – Rewa Siddhi (Madhay Pradesh), Parallel Taxi Track – Dabolim Airport, Goa, Greenfield Airport Hirasar (Gujarat), Zuari Bridge (Goa), Mohanpura Major Multipurpose Projects (Madhya Pradesh) and many more. Recently, the Company has received the Letter Of

Award (LOA) on September 14, 2020 from the National Highways Authority of India for Hybrid Annuity Model project in the state of Bihar. The company’s corporate governance framework enables it to make the most of stakeholder’s value legally, ethically and on a sustainable basis.

FINANCIALS

·        

Dilip Buildcon Ltd has reported net sales of Rs.6484.11 Cr in the FY 19 Dec and a net profit of Rs.309.87 Cr in the FY 19 Dec. Despite the nationwide lockdown due to Covid-19, labour unavailability and muted ordering in the sector the company has firmly tried to complete several of its on-going projects.

 

·        

For the year ending March 2020 Dilip Buildcon Ltd has declared an equity dividend of 10.00% amounting to Rs 1 per share. The company has a good dividend track report and has consistently declared dividends for the last 5 years. DBL's dependable track record in financial management has earned it the highest credit ratings for long term and short term bank facilities from various top rated credit rating agencies of the country.

 

VALUATION AND FINANCIAL FIGURES

INDUSTRY

AMOUNT IN RS.

SECTOR

INFRASTRUCTURE CIVIL

FACE VALUE

10

MKT.CAP (CRORE)

4879.26

PRICE AS ON (21/9/20)

357.05

P/E RATIO

14.65

BOOK VALUE

264

PRICE/BOOK VALUE

1.35

52 WEEK H/L

477.40 / 193.40

5 YRS H/L

1248 / 179

EPS (TRAILING TWELVE MONTHS)

24.38

DIVIDEND YIELD %

0.28%

BSE CODE

540047

NSE CODE

DBL

 

BALANCE SHEET PARTICULARS (RS.CR)

FY MAR 20

FY MAR 19

FY MAR 18

FY MAR 17

FY MAR 16

EQUITY

136.77

136.77

136.77

136.77

117.14

TOTAL RESERVE & SURPLUS

3469.22

3067.65

2320.29

1716.12

975.38

TOTAL CURRENT LIABILITIES

5733.11

5574.04

4682.17

3672.24

3195.45

TOTAL ASSETS

11,177.16

10,906.65

9347.71

6649.31

5333.94

NINE MONTHS RESULTS

FY DEC 19

FY DEC 18

FY DEC 17

FY DEC 16

FY DEC 15

INTEREST

465.22

387.05

338.47

310.49

276.01

NET SALES

6484.11

6547.26

5188

3343.09

2728.79

BASIC EPS

22.66

39.79

29.46

12.96

13.67

NET PROFIT

309.87

545.02

402.94

165.19

160.09

 

 

SHAREHOLDING PATTERN

SHAREHOLDING PATTERN (AS ON )

% HELD

INDIAN PROMOTERS

75

PLEDGED

29

FII/FPI

9

TOTAL DIIS

10

FIs AND INSURENCE CO.

0.5

MUTUAL FUND

7

TOTAL

100

 

 

SHARE PRICE MOVEMENT TILL DATE (1-year)

Note: Prices from September 2019 is being considered to project the graph.Calculations show Short Term Simple Moving Average (SMA)* i.e 20 Days SMA is above Long Term Simple Moving Average i.e 200 Days SMA which indicates a possibility of an uptrend ahead. Simple Moving Average (SMA)* is calculated taking into consideration the closing price of the scrip for a period of time.

 

PEER COMPARISON

 

COMPANY

SALES (CR) DEC 2019

NET PROFIT (CR) DEC 2019

MARKET CAP (CR)

DLF LTD.

1485.23

3341.29

39,864.90

IRB INFRASTRUCTURE DEVELOPER  LTD

3038.15

222.13

4090.88

NBCC (INDIA) LTD

3620.62

31.35

4635

AHLUWALIA CONTRACTS INDIA LTD

1172.41

50.92

1713.54

DILIP BUILDCON LTD.

6484.11

309.87

4883.36

 

 

 

 

AWARDS, ACHIEVEMENTS & TESTIMONIALS

·        

CNBC AWAAZ CEO Awards- 2019- “Company of the Year” – Infrastructure segment

·        

NATIONAL HIGHWAY EXCELLENCE Award – 2019 – “Excellence in Project Management”

·        

INFRASTRUCTURE DEVELOPMENT Award- 2019 – Dun & Bradstreet- Roads & Highways.

·        

CONSTRUCTION WORLD GLOBAL Award – 2019 – “3rd Fastest Growing Construction Company- Large Category.

·        

Recognition from NHAI, Ministry of Road Transport & Highways (GOI), Madhya Pradesh Road Development Corporation Ltd.

INDUSTRY PRESPECTIVE

 

·        

India has the second largest road network in the world, spanning a total of 5.89 million kilometres (kms). With the Government permitting 100 per cent Foreign Direct Investment (FDI) in the road sector, several foreign companies have formed partnerships with Indian players to capitalise on the sector's growth. Cumulative FDI in construction development stood at US$ 25.66 billion (app) between April 2000 and March 2020. The Government’s move to cut GST rates on construction equipment from 28 per cent to 18 per cent is expected to give boost to the industry.

·        

In April 2020, the Government has set a target of constructing roads worth Rs 15 lakh crore (app) for the next two years. On July 07, 2020, National Highway Authority of India (NHAI) has decided to undertake performance assessment and ranking of highways in the country to improve quality and provide higher level of service to highway commuters.

 

·        

Under Union Budget 2020-21, the Government has allocated Rs 91,823 crore (app) to the Ministry of Road Transport and Highways. The Union Budget for FY20-21 has decided to build 30,000 km (app) road under Pradhan Mantri Gram Sakad Yojana using various new age expertise like green technology, waste plastic and cold mix technology, thereby reducing the carbon path. 

 

 

 

 

REVIEW

Sentiments on the stock seem to be bullish in spite of various challenges the sector is facing during these testing times by completing several of its projects in the road and mining sector across numerous states. The Return on Capital Employed (ROCE) for the year end March 2020 is 21.66 % while Total Debt Equity Ratio is 0.76 both of which present an idea about the company finances to be suitable. DBL is confident of achieving fiscal closure of recently awarded Hybrid Annuity Model (HAM) projects soon which will start contributing towards the Engineering Procurement Construction revenue growth. The Company is looking forward to reduce business risk by geographical segmentation and diversification. DBL has taken moratorium on the loans and does not expect debt to rise further. The completion of Cube Highways Hybrid Annuity Model (HAM)* projects, better than expected order inflow and booking provides healthy visibility of future earnings for the company.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In financial terminology hybrid annuity means that the government makes payment in a fixed amount for a considerable period and then in a variable amount in the remaining period. This hybrid type of payment method is called HAM in the technical idiom. Hybrid Annuity Model (HAM) has been introduced by the Government of India to revive PPP (Public Private Partnership) in highway construction in India.

SOURCE: MONEYCONTROL, BSE, ICICI DIRECT, ECONOMIC TIMES, INDIA BRAND EQUITY FOUNDATION, TREND LYNE

 

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