Dolat Capital's research report on Dilip Buildcon
We broadly maintain our revenue and EBITDA margin estimates for FY19E/ FY20E. Out of 12 HAM projects awarded in Q4FY18/ Q1FY19, we factor revenue from 6 HAM projects in FY19 and remaining 6 to start from 1HFY20 due to delay in 'appointed date'. Our revenue estimate of ₹110 bn in FY20E is lower than management's guidance of ₹115-120 bn. We factor higher capex of `2 bn for FY20E vs management guidance of nil. We downgrade our Adj. PAT estimates by 3.4% for FY19E due to higher interest cost and maintain for FY20E. Debt has increased by `932 mn/ ₹7.4bn during Q3FY19/ 9MFY19 to `37 bn due to money spent on projects where revenue contribution is either nil/ negligible. We factor reduction in debt to ₹34.6 bn (FY19E) in line with management guidance however we factor higher debt level of ~₹36.7bn for FY19E and FY20E. We expect DBL's revenue/ Adj.
Outlook
APT to grow at muted CAGR of 14.0%/ 15.8% over FY19-21E. We rollover to FY21E. The stock has corrected sharply ~70% during YTDFY19, thus, we maintain Buy with a downward revised SOTP of `579 (Exhibit 1).
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Read More First Published on Feb 15, 2019 03:38 pm
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