Dilip Buildcon up 7% after NHAI declares firm lowest bidder for EPC project

In the past one month, Dilip Buildcon's stock has outperformed the market by surging 79 per cent, as compared to 1 per cent rise in the benchmark S&P BSE Sensex.

Shares of Dilip Buildcon surged 7 per cent to Rs 601 on the BSE in intra-day trade after the company said it has been declared the lowest (L-1) bidder by the National Highways Authority of India (NHAI) for EPC (engineering procurement and construction) project worth of Rs 480 crore in the state of Maharashtra.

“The road project is for four laning of Saoner-Dhapewada-Kalmeshwar-Gondkhairi, NH-547E, from km 4.700 to km 33.575 in the state of Maharashtra on EPC mode,” Dilip Buildcon said in a BSE filing.

In the past one month, Dilip Buildcon's stock has outperformed the market by zooming 79 per cent, as compared to 1 per cent rise in the benchmark S&P BSE Sensex. It recovered 93 per cent from its 52-week low level of Rs 312 touched on February 5, 2019, on the BSE.

During Q3FY19 (October-December 2018), the roads and highways construction firm added Rs 1,800 crore worth of orders (spanning across irrigation, metro and mining as NHAI awarding remained muted) and its order book is Rs 23,100 crore (Roads/Mining 81/14.4 per cent).

After already lowering the FY19E guidance by 5 per cent, Dilip Buildcon now remains confident of achieving around Rs 9,400-9,500/11,500 crore of revenue in FY19/20E respectively. While the company will prefer EPC over HAMs (hybrid annuity model) in roads, it will continue to look at less capex intensive projects like micro irrigation, Dams and Metro projects, analysts at HDFC Securities said in result update.