Dilip Buildcon - The best-in-class execution!

Stock Opportunities Not-so-Hidden Gems
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I beg to differ with the point that a company cannot build a moat in this industry.

Please find the points below

  1. A lot depends on how a company goes for bidding. Those who bid aggresively throwing caution to the wind will find themselves saddled with debt when the time comes for execution.
  2. ‘Capacity to suffer’ is the most important trait that can differentiate a company in this industry
  3. Being asset light helps
  4. Hands-on approach of the management - Main reason behind the performance of Dilip
  5. Management’s expertise - EPC or BOT, Asset light/Integrated model; Not everyone can excel in both the models
  6. A little bit of luck - as the order allotment is at the mercy of government; But Lucky are those who are prepared enough to grab the opportunity with both the hands as and when it arrives

Please read this post on KNR to understand how to think about this industry

Disc: Invested in KNR

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