Dilip Buildcon jumps 3% higher on winning ₹397-crore project

On Monday, Bhopal-based, Dilip Buildcon Ltd (DBL) announced, that the company  has secured a project in Udaipur, Rajasthan. The project is titled 'Planning, Design, and Construction of Dewas III and IV Dams in Tehsil-Gogunda, Udaipur District, with a total estimated cost of ₹396.93 crore, this project is slated to be completed within 44 months from the commencement of work, as announced by the construction engineering company through a regulatory filing.

DBL's Recent Projects

This recent achievement adds to DBL's growing portfolio of projects. On June 8, the company's wholly-owned subsidiary executed a concession agreement with the National Highway Authority of India (NHAI) for a ₹780-crore road project. Under this project, DBL will be responsible for developing a six-lane access-controlled greenfield highway from Audireddipalle to Mallapalle of Bengaluru on the Vijayawada Economic Corridor (NH544G) on HAM mode under the Bharatmala Pariyojana Phase-I in Andhra Pradesh. This ambitious project is set to be completed within 24 months from the appointed date and will have an operation period of 15 years from the commercial operation date (COD).

Partnerships and Joint Ventures

In addition to these projects, DBL has been actively forming partnerships and joint ventures to expand its presence in the construction and infrastructure development sector. Last month, a joint venture between DBL and Patel Engineering Ltd secured an LOA for a project worth ₹1,275.30 crore in Ujjain. This project encompasses engineering, procurement, construction, testing, commissioning, trial run, and operation and maintenance for 10 years of the Narmada Gambhir Multi Village Drinking Water Supply Scheme.

In September, another DBL joint venture with Vijay Kumar Mishra Construction entered into an agreement with the Water Resources Department Madhya Pradesh, Bhopal (MP). This particular contract involves the construction of the Malhargarh Pressurized Micro Lift Major Irrigation Project on a turnkey basis, covering a project area of 46,500 hectares of irrigation land. It encompasses the preparation of construction drawings and designs, obtaining approval of all construction drawings and designs from competent authorities, and the execution of all civil, mechanical, and electrical works necessary for the project.

The estimated cost for this project is ₹699.03 crore, and it is expected to be completed within 36 months.

Year-over-Year (YoY) Comparison

When comparing the financial performance of the first quarter of FY2024 to the same period in the previous fiscal year, we observe positive trends. In Q1 FY2024, the company reported a total income of ₹2,944.30 crores, which marked an increase from ₹2,906.23 crores in Q1 FY2023. 

And net profit of ₹12.68 crores in Q1 FY2024, showing an improvement compared to the loss of ₹53.94 crores reported in Q1 FY2023. Earnings per share (EPS) for the quarter ending June 30, 2023, stood at 0.84, indicating a positive shift from the EPS of -3.77 reported for the same quarter in the previous fiscal year, Q1 FY2023.

Stock Performance

In the last six months, Dilip Buildcon's stock has surged by 75%, and it has given a 44% return to shareholders over the past year. However, when looking at a five-year period, the stock has declined by 40%. On October 14, 2021, it reached a high of 697, but it's currently trading at 318, which is a 54% discount from that peak.

Continued Growth and Commitment to Quality

Dilip Buildcon Ltd continues to demonstrate its commitment to growth and quality in the construction and infrastructure sector. With a diverse portfolio of projects and successful partnerships, DBL remains a key player in India's development landscape. The company's recent project in Udaipur, Rajasthan, shows its dedication to executing projects efficiently and contributing to the nation's infrastructure development.