Rs 23,988.6 crore order book: This small-cap civil construction company bags a order worth Rs 270 crore; reported impressive profit growth of 300 per cent!
The stock has given 73 per cent returns in last one year where company has been maintaining a healthy dividend payout of 53.5 per cent.
Dilip Buildcon Limited has received the green light for a prestigious project to construct observatory towers and viewing galleries on the New Zuari Bridge in Goa. The company announced the receipt of the letter of acceptance (LOA) on December 14, 2023, confirming its earlier status as the L-1 bidder for the tender floated by the Public Works Department.
The project, valued at Rs 270.07 crore, will see Dilip Buildcon develop towers and viewing galleries along with supporting infrastructure like approaches, decorative lighting, and parking facilities. This iconic addition to the Panjim-Mangalore section of NH-17/NH-66 promises to enhance the travel experience and offer breathtaking views of the Zuari River.
The project will be executed under the DBFOT (Design, Build, Finance, Operate, and Transfer) model, with a concession period of 60 months followed by a 50-year operation and maintenance responsibility. This Public-Private Partnership model paves the way for sustainable development and efficient infrastructure creation.
Dilip Buildcon's expertise in constructing bridges and highways makes them well-positioned to deliver this project successfully. The company's track record of on-time completion and quality construction inspires confidence in the timely realization of this exciting project.
Key Highlights:
- Project value: Rs. 270.07 crore
- Project scope: Construction of observatory towers and viewing galleries, approaches, lighting, and parking
- Location: New Zuari Bridge, Panjim-Mangalore section of NH-17/NH-66
- Mode: DBFOT
- Concession period: 60 months
- Operation and maintenance period: 50 years
- Contractor: Dilip Buildcon Limited
Current order book as on September 30th, 2023 – Rs 23,988.6 crore
The Quarterly Results for the period ending September 2023 reflect a mixed outcome. Sales experienced a marginal decline of 2.47 per cent quarter-over-quarter (QoQ) but sustained a positive year-over-year (YoY) growth of 9.74 per cent, reaching Rs 2848.67 crore. Net profit exhibited a remarkable surge, soaring by 303.47 per cent YoY and 441.25 per cent QoQ, culminating in a substantial value of Rs 68.63 crore. However, operating profit faced challenges, witnessing a decline of 3.22 per cent YoY and a more significant downturn of 13.48 per cent QoQ, settling at Rs 340.57 crore.
This is a Small-Cap civil construction stock with market capitalization of Rs 5,800 crore, currently trading at Rs 397. The stock has given 73 per cent returns in last one year where company has been maintaining a healthy dividend payout of 53.5 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.
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