🟡 At a Glance
Dilip Buildcon Ltd (DBL) is a road-and-beyond EPC contractor whose growth trajectory has been as bumpy as Indian highways. With a ₹17,400 Cr order book, multiple project wins, and a recent net profit rebound, the stock looks to be revving again. But beneath the hard hat lies some serious debt, arbitration drama, and a promoter stake crash. Let’s dig (pun intended).
1. 🚀 Introduction with Hook
You know you’re in India when:
- Roads are either under construction or being inaugurated by politicians.
- And chances are, Dilip Buildcon is building both.
Once an investor darling post-IPO, DBL hit a pothole in the last 5 years with ballooning debt, arbitration landmines, and slowing sales. Now with fresh project wins and profit rebound, is this the infra ka redemption arc or a mirage before another detour?
2. 🏗️ WTF Do They Even Do? (Business Model)
Dilip Buildcon isn’t just a road contractor anymore:
- EPC Projects (~93% of FY24 Revenue): Roads, highways, bridges, flyovers, tunnels, mining excavation, metros, airports, irrigation — you name it.
- HAM + BOT + Annuity (~7%): They also own equity in hybrid-annuity and toll-based infra projects via SPVs.
- Mining & Urban Infra: Slowly entering new verticals like mining excavation (for CIL, NCL), dams, and smart cities.
In short: They don’t build Rome in a day, but they’ll bid to build its expressway.
3. 💸 Financials – Profit, Margins, Growth
📈 FY25 Net Profit = ₹840 Cr
🧮 FY24 Revenue = ₹11,317 Cr
⚙️ FY25 EBITDA Margin = 19% (up from 12%)
👉 From a -₹550 Cr loss in FY22 to ₹840 Cr PAT in FY25 — this is a 𝘁𝗼𝘁𝗮𝗹 180-degree U-turn.
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (Cr) | 9,564 | 10,630 | 12,012 | 11,317 |
| EBITDA (Cr) | 776 | 957 | 1,421 | 2,151 |
| Net Profit (Cr) | -550 | -1 | 201 | 840 |
| EPS (₹) | -37.54 | 0.06 | 13.27 | 43.83 |
Margins are finally paving a smooth road: 21% OPM in Q4FY25.
But beware: FY24 sales declined YoY, though margins saved the day.
4. 📊 Valuation – Cheap, Meh, or Crack?
- CMP: ₹504
- TTM EPS: ₹43.83
- P/E: 11.5x
- Book Value: ₹346 → P/B = 1.46x
This is the cheapest road EPC stock by valuation, despite a ₹17,000 Cr order book. Why?
Because:
“DBL ka stock kabhi debt-free nahi hota.”
5. 🍳 What’s Cooking – Triggers & Drama
Here’s what’s spicing up DBL’s 2025 outlook:
✅ New Orders:
- ₹1,341 Cr EPC tunnel project in Kerala
- ₹1,060 Cr Bangalore-Chennai Expressway
- ₹1,255 Cr Raipur-Visakhapatnam Highway (Commercial Ops started)
✅ Arbitration Windfalls:
- ₹98 Cr + ₹176 Cr + ₹46 Cr + ₹29 Cr won across disputes
- This is literally “legal ka jackpot”
✅ Warrant Conversion (₹378 Cr): Raises equity → Dilutes promoter holding but brings liquidity.
⚠️ Promoter holding dropped from 70% → 63.14% in Jun 2025. Not great for market confidence.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
- Total Debt FY25: ₹9,525 Cr
- Net Worth: ₹5,064 Cr
- D/E = ~1.9x
- Contingent Liabilities = ₹4,148 Cr
So basically:
“Infra ka badshah, par leverage ka aashiq.”
The company still carries heavy debt due to stuck receivables, SPV equity infusions, and capital-intensive nature of HAM/BOT projects.
7. 💵 Cash Flow – Sab Number Game Hai
Let’s decode the jugglery:
- Operating Cash Flow FY25: ₹131 Cr (vs ₹1,070 Cr in FY24)
- Investing Cash: -₹731 Cr
- Financing Cash: +₹1,022 Cr (mostly warrants + borrowings)
Despite accounting profits, real cash isn’t flowing like their highways.
8. 📉 Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 10% |
| ROCE | 15% |
| OPM (Q4FY25) | 21% |
| D/E Ratio | 1.9x |
| Interest Coverage | 1.5x |
| Inventory Days | 149 |
| Debtor Days | 46 |
🧠 Improved margins + working capital control = 👏
But interest coverage remains meh.
9. 💸 P&L Breakdown – Show Me the Money
- DBL’s ₹3,096 Cr Q4 revenue delivered a ₹277 Cr PAT
- YoY margin expansion driven by:
- Faster execution
- Resolution of arbitration cases
- Fixed asset base stability (CAPEX under control)
Their execution speed gives them an edge in winning orders.
10. ⚔️ Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | D/E |
|---|---|---|---|---|
| Dilip Buildcon | 11.5x | 9.8% | 19% | 1.9x |
| L&T | 32.3x | 16.5% | 13% | 0.4x |
| NBCC | 50.7x | 25.9% | 5% | 0.1x |
| Kalpataru | 36.5x | 9.6% | 9% | 0.3x |
DBL is the most undervalued, but carries the most baggage.
11. 🧪 Misc – Promoters, Institutions, Drama
- Promoter Holding Crash: Down to 63.14% due to warrant conversion
- FIIs: Very low interest (~2.8%)
- DIIs: Falling to ~5.9% from ~9% YoY
- Public Holding Surge: 28% in Jun 2025 = Retail is betting big
Investor churn is a red flag, but some dilution was necessary to fund growth.
12. 📉 Fair Value – Kitna Sahi Hai?
Let’s value it conservatively:
- FY26E EPS = ₹50–55
- Infra EPCs trade between 10x–15x P/E
🎯 FV Range = ₹500 to ₹825
- At 10x → ₹500 = Current Price (fully pricing in debt risks)
- At 15x → ₹825 = If margin expansion sustains + order book scales
13. 🧑⚖️ EduInvesting Verdict™
✅ What we like:
- Profit turnaround
- Mega order wins
- Arbitration cash boosts
- Deep value vs peers
🚫 What we fear:
- Debt + contingent liabilities = constant headache
- Diluting promoter stake
- An EPC-only model may struggle to command high P/E
Final Take:
Dilip Buildcon is the Ranbir Kapoor of infra stocks — full of talent, lots of comebacks, and always trying to break the toxic past (aka debt). Watch it, don’t worship it. 🏗️
✍️ Written by Prashant | 📅 10 July 2025
Tags: Dilip Buildcon, EPC, HAM Projects, Infra Stocks India, Arbitration Award, Order Book, Debt-to-Equity, Road Construction, Value Stocks, EduInvesting
