Synopsis: Infrastructure company received a new infrastructure project from REC Power Development and Consultancy ltd related to develop power transmission project in Karnataka. The project will involve building key transmission infrastructure and will be executed under a long-term concession structure.
The shares of this infrastructure company is majorly engaged in the business of development of infrastructure facilities in engineering, procurement and construction, were in focus after receiving an LOI for a power transmission project
With the market capitalization of Rs. 7369 Crores, the shares of Dilip Buildcon Ltd were trading at around Rs. 454 per share which is 22 percent discount from its 52 weeks high of Rs. 585 per share and is trading at a P/E of 11.3 where as industry P/E stands at 15.1
What is the NEWS
Dilip Buildcon Limited has secured a Letter of Intent from REC Power Development and Consultancy Limited, who are acting as bid process coordinator on behalf of the Government of Karnataka, to develop a 400 kV sub-station at Mekhali in Belagavi district that is associated with transmission lines. The company would develop this project by acquiring 100 percent equity in the project’s SPV, wherein it would act as a Transmission Service Provider to develop, own, operate, and maintain this transmission system
It would develop this project under a BOOT model and execute it through tariff-based competitive bidding. It would complete this construction and commissioning work in 24 months from the effective date of the agreement. The value of this EPC order stands at about Rs. 1,850 crore, and it would have a concession period of 35 years from the commercial operation date.
About the Company and Financials
Dilip Buildcon Limited majorly engaged in the business of development of infrastructure facilities on Engineering, Procurement and Construction basis (EPC) and also undertakes contracts from the Government and various other parties.
The company has won 10 new projects worth Rs. 17,565 Crores during the Q2 and Q3 of FY26 and completed 4 projects worth Rs. 2744 Crores. The total order book stands at Rs. 29,372 Crores which is contributed by various sectors including mining, irrigation, road & highways renewable energy and many more. Around 86 percent of the order book is EPC-based and 14 percent of the order book is HAM based.
Year on Year analysis: Revenue from operations has decreased from Rs. 2590 Crores to Rs. 2138 Crores, down 17 percent. Operating profit has decreased from Rs. 477 Crores to Rs. 382 Crores down 20 percent and net profit has increased from Rs. 158 Crores to Rs. 789 Crores, up 399 percent due to income from other sources
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 1926 Crores to Rs. 2138 Crores, up 11 percent. Operating profit has decreased from Rs. 471 Crores to Rs. 382 Crores, down 18.8 percent and net profit has increased from Rs. 214 Crores to Rs. 789 Crores, up 269 percent
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