📌 At a glance
Deepak Builders & Engineers India Ltd (DBEIL) has delivered a strong FY25 with revenue of ₹58,179 lakh and profit after tax of ₹5,674 lakh, all while completing its IPO in October 2024. No audit qualifications, no weird surprises, and the IPO money hasn’t vanished into Bitcoin — it’s (safely?) parked in bank fixed deposits. So is this a boringly good infra company? Or is it hiding its masala under layers of concrete?
🏗️ About the Company
Deepak Builders is in the civil construction and infrastructure development business, handling contracts across roads, bridges, and real estate. Headquartered in Ludhiana (because Ambani can’t have all the cities), they recently listed on NSE and BSE in October 2024 after raising over ₹260 crore.
- CIN: L45309DL2017PLC323467
- Headquarters: New Delhi (Regd), Ludhiana (Ops)
- Listed On: NSE (DBEIL), BSE (544276)
- IPO Date: 28 October 2024
- IPO Price: ₹203/share
📊 Financial Performance — FY25 (Audited)
| Metric | FY25 | FY24 | % Change |
|---|---|---|---|
| Revenue from Operations | ₹58,179 lakh | ₹51,140 lakh | +13.8% |
| Other Income | ₹486 lakh | ₹534 lakh | -9% |
| Total Income | ₹58,665 lakh | ₹51,674 lakh | +13.5% |
| Total Expenses | ₹50,561 lakh | ₹43,495 lakh | +16.2% |
| EBITDA (approx) | ₹10,815 lakh | ₹10,453 lakh | +3.5% |
| Finance Costs | ₹2,772 lakh | ₹2,856 lakh | -2.9% |
| Depreciation | ₹679 lakh | ₹717 lakh | -5.3% |
| Profit Before Tax | ₹8,103 lakh | ₹8,179 lakh | Flat (-0.9%) |
| Net Profit | ₹5,674 lakh | ₹6,041 lakh | -6.1% |
| EPS (Basic) | ₹14.04 | ₹16.84 | Down due to dilution |
🧠 The numbers look healthy — but profit dipped slightly because of expanded share capital post-IPO.
💸 IPO Proceeds — Where Did the ₹260 Crore Go?
The IPO raised ₹260.04 crore, including both fresh issue and OFS. Here’s the utilization status as of March 31, 2025:
| Purpose | Planned (₹ lakh) | Utilized | Unutilized |
|---|---|---|---|
| Loan Repayment | ₹3,000 | ₹2,410 | ₹590 |
| Working Capital | ₹11,195 | ₹11,195 | ₹0 |
| Public Issue Expenses | ₹2,128 | ₹2,057 | ₹71 |
| General Corporate | ₹5,397 | ₹5,017 | ₹380 |
| Total | ₹21,721 | ₹20,680 | ₹1,041 |
✅ Monitoring agency: CRISIL
✅ No deviation
🏦 Unused ₹10.4 crore is sitting in bank FDs and cash credit accounts, like your grandpa waiting for LIC maturity.
🏗️ Balance Sheet Highlights
| Particulars | FY25 | FY24 |
|---|---|---|
| Total Assets | ₹83,195 lakh | ₹55,875 lakh |
| Net Worth | ₹41,285 lakh | ₹16,010 lakh |
| Total Liabilities | ₹41,910 lakh | ₹38,865 lakh |
| Equity Share Capital | ₹4,658 lakh | ₹3,588 lakh |
| Other Equity | ₹36,627 lakh | ₹12,422 lakh |
🧱 Asset growth is real. But liabilities have also scaled up.
🧾 Cash Flow Breakdown
Operating Cash Flow:
- ₹(13,124) lakh outflow due to rise in receivables, inventories, and other assets.
🚨 Not a great sign. Working capital is bleeding.
Investing Cash Flow:
- ₹(1,191) lakh mostly due to asset purchases.
Financing Cash Flow:
- ₹15,255 lakh inflow due to IPO proceeds and debt raise.
🔍 Net cash increase of ₹939 lakh, taking year-end cash to ₹948 lakh from ₹8 lakh.
📉 EduInvesting Warning Signs
While everything looks squeaky clean, let’s not get carried away. Here are some eyebrow-raisers:
| 🚩 Red Flag | Observation |
|---|---|
| Operating Cash Flow Negative | Huge jump in receivables & inventories |
| Receivables up by ₹9,183 lakh | Cash not yet collected |
| Inventories jumped ₹7,530 lakh | Projects likely stuck or delayed |
| Other assets up ₹8,604 lakh | Vague — maybe unbilled revenue? |
🧮 Forward-Looking Fair Value Estimate
Let’s assume:
- Normalized PAT: ₹6,000 lakh
- Fully diluted equity: 4.66 crore shares
- EPS: ₹12.87
- P/E target (infra avg): 15x
Fair Value = ₹12.87 × 15 = ₹193 per share
CMP: ₹155.80
👉 Potential upside: +24%, but conditional on cash flow recovery.
🧠 EduInvesting Take
🧱 DBEIL feels like a rare IPO that didn’t scam investors.
- ✅ Clean audit.
- ✅ Funds traceable.
- ✅ Revenue and order book growing.
- ❌ But cash is leaking like a tap in a construction site bathroom.
📣 Weirdly honest infra stock. Who approved this?!
DBEIL’s story is like a civil engineer who built a great foundation, but forgot to collect the money from the client.
🕵️♂️ Risks & Red Flags
- Receivables Risk: ₹9,183 lakh jump = someone hasn’t paid yet.
- Working Capital Blackhole: High inventory + asset buildup + low collection = trouble brewing?
- Execution Bottlenecks: Might be stuck in low-margin or delayed projects.
- Valuation Catch-Up: IPO was priced at ₹203. CMP is ₹155. Still trading at a discount — but for a reason.
🧱 Infra Sector Outlook
- Govt push on infra = massive opportunity.
- But payment cycles are slow.
- Working capital remains the Achilles heel for EPC players.
- Only those with disciplined execution and tight collections will survive.
📜 Conclusion
✅ Deepak Builders FY25 Results: Solid.
🔍 Cash Flow: Questionable.
🧠 IPO Funds: Transparent.
📊 Outlook: Cautiously Positive.
CMP ₹155.80 looks undervalued if — and that’s a big IF — they manage working capital better in FY26.
Tags: Deepak Builders FY25 Results, DBEIL IPO Funds, Infra Stocks India 2025, EduInvesting Infra Analysis, Civil Construction Companies India, Working Capital Stress Stocks, IPO Watch India
Author: Prashant Marathe
Date: 31 May 2025
