Shares of Dilip Buildcom jumped almost 5 per cent in intra-day commerce on Friday, defying the market pattern, to scale a contemporary 52-week high of Rs 697 on the BSE after the agency emerged because the lowest bidder for orders worth Rs 2,241 crore.
“Dilip Buildcon has been declared as L-1 bidder for two new National Highways Authority of India HAM projects under Bharatmala Pariyojana, Phase I in Tamil Nadu and Puducherry for orders worth Rs 2,241 crore,” the company mentioned in a BSE submitting. READ HERE
The project entails four-laning of the Viluppuram Puducherry part of NH 45A (New NH 332) and Puducherry-Poondiyankuppam part of NH 45A below Bharatsnala Pariyoiana Phase I.
The company’s shares rose following this growth, solely to pare good points later. At 12.40 pm, the scrip was up 1.83 per cent at Rs 678.95 on the BSE as towards a 3.60 per cent fall to 49,204 within the BSE barometer Sensex.
This is the second project in as many as three days through which Dilip Buildcon has emerged because the lowest bidder.
The company, on Wednesday, February 24, had knowledgeable exchanges that it was declared as L-1 bidder for 2 new HAM tasks – Bangalore Chennai Expressway – below Bharatmala Pariyojna within the state of Karnataka worth Rs 2,439 crore.
In 9MFY21, the company gained tasks worth Rs 15,800 crore throughout six sectors and made its entry into the railway phase. Total order e book as of December 2020 stood at Rs 25,500 crore with roads contributing 44 per cent, irrigation 18 per cent, mining 16 per cent and relaxation between bridge, tunnel, metro, airport and railways.
A big and diversified order e book, constructive financial outlook, sturdy execution capabilities and managed working capital augur effectively for the company, in line with analysis analysts Mangesh Bhadang and Ash Shah at Nirmal Bang.
“We have increased our target PE multiple for the EPC business from 8x to 10x. We believe that there is further upside potential to our target multiple if the growth visibility improves further. We have marginally tweaked our estimates for the company, which are little changed from the previous one but given the better visibility on earnings and order book, we expect re-rating of the sector along with that of Dilip Buildcon,” they added in an earnings protection report, dated February 15.