Dilip Buildcon trades low despite getting certificate of completion
The infrastructure EPC company, Dilip Buildcon Ltd reported that its upgradation and rehabilitation project of NH-66 got provisional certificate of completion today.
The completion certificate to any project marks the key milestone as it suggests that the regulatory authority has permitted the project and its related parts as legal, safe and reliable for commercial operations.
The rehabilitation and upgradation of four-lane projects in the state of Maharashtra under NHDP–IV on hybrid annuity model (HAM) has been provisionally completed. The CoC allowed the company to start operations from March 23, 2020. The total work has scope of Rs 914 crore. In the current situation, revenue recognition from such projects can help the company to sustain financially.
The total order book of the company stood at Rs 2,120.53 crore at the end of the third quarter of FY20. Road segment constituted 63.81 per cent of this total order book. The stock is currently trading at nearly 80 per cent low from its 52-week high. Recent lockdown and related impacts on the economy can hit the growth of infrastructure companies.
On Friday, the stock closed at Rs 241.00, down by 4.74 per cent on BSE.