Dilip Buildcon - The best-in-class execution!


#87

Not a good sign especially just before annual results.


(Tarak) #91

Today the share has cracked by more than 4% and share has finally trading below the crucial level of 1100.
Also there is a NEWS that promoters have further increased pledging of shares.But this seems natural as company has won many orders recently and so there is good capital requirements.This is my view.
Opinions of others is welcome.


(Tarak) #92

The results of Dilip Buildcon is expected on 29th of May18. Topline is expected to be 7500 Crores and EPS is expected to be 50.
Some component of early completion bonus would aid bottom line.Also cash flow from Shrem Group deal was expected in Q4 FY18.This cash flow would reduce the interests cost in Q1 FY19 onwards.


(Tarak) #93

Dilip Buildcon has broken the resistance of 1100 and is currently trading below 1100.Similar correction can be seen in KNR Constructions chart. I understand this sharp corrections are because Mutual Funds are re-aligning their portfolios as SEBI deadline of 31st May 2018 looms.Comments invited.
Disc: Invested


(madhavikkutti) #94

I hope, today’s sharp correction was only related to the Mutual Funds reclassification. Q4 results seem to be good to me. Any thoughts on this?

Disc: Invested


#95

I believe the sharp reaction was for this:

We understand that there are unconfirmed rumors in the market relating to the resignation of our Statutory Auditors of the Company.

The Company wishes to clarify that the Company has already declared Audited Financial Results for the Financial Year 2017-18 on May 30, 2018 and M/s Mukund M. Chitale & Co., Chartered Accountants, Mumbai and M/s MSG & Associates, Chartered Accountant, Bhopal, Joint Statutory Auditors of the Company have issued the Auditors’ Report for the Financial year ended March 31, 2018 with unqualified opinion in respect of the Standalone and Consolidated Financial Results, the copies of which has already been submitted to the Stock Exchanges.

We therefore wish to confirm that there is no truth in the matter and the rumors are baseless. We further attach the confirmation received from our Joint Statutory Auditors regarding continuing as Statutory Auditors of the Company uninterruptedly.

As for the results, I believe it was in-line with my expectations. A sharp reduction in WC cycle (as guided last quarter) is a positive.


(Mahendra243) #96

maybe people are taking amit mantri seriously now…after he has raised more red flags in vakrangee…manpasand…kitex

Capture


(jt88) #97

Addendum to the Investor Presentation

Pursuant to the relevant provisions of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, we would like to inform you that, In the light of false rumors that have been spread against the Company, here is the addendum to our presentation which addresses most of the queries and concerns raised during the call, we hope this will provide much needed clarity. While this will, the detailed schedules and notes will be released in a few days which will then resolve the queries if any remain.

https://www.bseindia.com/corporates/anndet_new.aspx?newsid=d70790e4-625e-4cd7-99dd-6f9b79a0ed86


(akhilgulecha) #98

With so much happening in the stock since the past 2 days, I’m sure a lot of investors here are confused about the truth of the allegations and whether to still hold the stock or let go. It would be really great if any experienced investor could share some insight.


(Sameer Wakude) #99

Hi,
Nobody can tell you what to do, it all depends on your risk profile and conviction.
I still feel that the growth story is real, upside is huge (my conviction).
In a long run, I don’t care if the stock goes down by 50% (Risk Profile).
You need to ensure that your bets are well spread (diversified).

Take a call based on your risk profile & conviction.
If you have no conviction left, sell.
If you have conviction and can’t bear the risk of downside, sell partially (to reduce the risk)
If you have conviction and can bear the risk of downside, Hold.
If you have a huge conviction and can take bigger risk, Buy more.
True with all investments, not just DBL.


#100

I just wanted to record my thoughts here.

Its really simple investment thesis with DBL, the investors can expect earnings growth of at least 25-30% based on the current growth rate and order-book (if we agree with the management’s numbers). But the recent fall is not due to the operations of the company but due to the following market factors…

  1. I believe the rumors/news reg. resignation of auditors really spooked the market. I have to agree that the delay in publishing the results by the company (15+ hours later than the scheduled time) really did not help the sentiment. So now its up to the investor to really believe the management’s numbers.

  2. SEBI’s deadline for portfolio restructuring could have also triggered the recent sell off as the various mid-cap funds (which hold DBL) have to offload the share before end of the month (ie. today - which will explain ~90x avg. daily volume traded for today).

So investing in DBL is based one one’s risk appetite and conviction in the company.


(Mahendra243) #103

DBL will be in ASM from June 1st with 5% circuit and 100% margins levied with other bunch of stocks


(PE_Ratio) #104

Q4 Concall notes:

Malicious and false rumors around auditors resigning – all are baseless. Auditors are strong.

Focus is on execution of projects in hands.

27kms a day (govt’s road target) of construction. DBL is building 15% of that on its own. No subcontractors. Own equipment own people. Huge for any company. Second peer is only 1/3rd in size. 18,000 kms of road laid since inception, 8000kms completed only in last 5 yrs – max that any company has built in India. Built in every geography, under every govt.

One important thing – Rating upgraded to A1+ for short term and AA- for long term. NCD of 600cr was subscribed at 8.9% coupon rate which is the lowest by any infrastructure player in the recent past.

Tie up with IBM for digital transformation to implement SAP Hana. Moving from Oracle base to SAP.

Completed 7 projects before time – translating to early completion bonus of 88 crores.

Largest equipment owner in the country.

CFO resigned due to some personal reasons. Raja Ghosh is interim CFO.

Memorable event of Q4 - Annual Investor Day

Won 19 projects in this quarter.

99% of projects are from central govt. No state govt. orders.

Capex for this FY is around 400cr

Current order book is robust and provides visibility for next 2.5 to 3 yrs. However also expect at least 10,000 to 12,000cr new order this year. Topline will be around 10,000cr. EBITDA margin will be 17 or 18%.

Assets sold at 1.05 book value to Shrem group. And some assets in loss. But when put together, all assets are sold at book value. On questioned why provisioning was made, answer was that it was required as per Indian Accounting Standards. The impairment will be reversed in the next quarter. It’s timing issue – Milestone based. So far 600cr has come from Shrem group.

OCF, FCF – highest. Debt has gone up because the company has done 2600cr extra top line. Working capital has been reduced.

Funding new HAM projects – 1000cr from Shrem group. And some debt. No equity requirement.

Accounting tax rate – 21.3%.

There is a ceiling of 5% on the early completion bonus.

Inventory days has gone down by a month, becoming better. It’s coming down every year. Inventory level is high. It’s because DBL does everything on its own - Equipment, manpower, everything. No subcontracting.
Deleveraging the Balance sheet – Debt for adding equipment – 400cr. Working capital requirement. D/E will be below 1 this year.

Were there other investors interested in buying the asset? The deal was better with Shrem.

How to improve working capital days? Come down to 95 days. Already an improvement. It’ll come down further more.

There was no difference in opinion in making the consolidated Q4 numbers. It was just problem with consolidation that led to delay in the completion of board meeting. It was just calculation thing.

A worried individual investor expressed concerns about rumors – And Rohan giving a huge explanation as to why the company is trustable. Discussion deviated to price action from business.

So many questions on Shrem transaction, that the company was having a discussion in the background on sharing some notes on this.


(aerofire) #105

(ashutosh_shah) #106

edelweiss report on the concerns over Dilip Buildcon.

Dilip Buildcon Ltd - Much ado about nothing.pdf (303.8 KB)

Disc:- Exited at 960, like the company may enter after elections.


(ashutosh_shah) #108

I too love Dilip Buildcon but I am scared of mp elections . Even if bgp wins there there will be a loss for the company as I think they will make huge donations and other things and it will be ultimately written off from the pl.

Thats my view.


(Sameer Wakude) #109

In my opinion political risk always remains with any infra related company. To be honest, no infra company can survive in India without political connection, some connections are openly known and some are in the offings.


(Antriksh Patel) #115

(Balusu Aditya) #116

(DaNjY) #117

One of the great company in execution, They expand their business all over india and done work under all government like in West Bengal, Jharkhand,Kerala,Andra pradesh etc. and got the bonus from all order. Political risk is always their in investment even in other stock also. The most important thing is working module is very different in DBL from other infra players. DBL data is looking very good result are outstanding and future growth is very clear . In investor presentation cleared about roomer and Shrem group deal.

It’s seem the correction is good opportunity but market will not price very easily on this counter it’s need more trust and good result.