Dilip Buildcon extends rally, soars 22% in 3 days; stock nears 52-week high

In the past three days, the stock price of Dilip Buildcon has rallied 22 per cent, quoting close to its 52-week high level

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Dilip Buildcon share price today

Shares of Dilip Buildcon surged 8 per cent to ₹559.70 on the BSE in Friday's intra-day trade, extending its two-day rally. 

 

In the past three days, the stock price of the civil construction company has rallied 22 per cent. It is quoting close to its 52-week high level of ₹582.40, touched on September 13, 2024.

Dilip Buildcon's clarification on price movement

Dilip Buildcon said the company has been making prompt disclosures of all the material events or information within the stipulated timelines as required under regulations, which may have an impact on the operation/performance of the company, including all the price-sensitive information.

 

The company, on an increase in volume, clarified that as per the information available, there is no such material event or information that is significant and price sensitive and needs to be disseminated to the investors for their information.  

Dilip Buildcon order book, market outlook

The company's order book of ₹14,923 crore provides clear revenue visibility. It is supported by a disciplined profit-focused bidding strategy and is diversified across key sectors, such as roads and highways (21 per cent), mining (21.33 per cent), irrigation (20.37 per cent), tunnels (12.26 per cent), water supply (8.56 per cent) and optical fibre (5.80 per cent). This further bolsters the company's multi-sector execution capabilities.

 

The outlook for India's infrastructure sector remains promising. Significant long-term opportunities continue to emerge as the government progressively augments annual budgetary allocations and emphasises infrastructure development. Flagship initiatives such as the National Infrastructure Pipeline and other strategic programmes are creating an environment conducive to investment and expansion across the sector.

 

Accounting for around 38 per cent of India's infrastructure market, transportation infrastructure represents the company's core competency. Despite short-term challenges in highway awarding, the long-term outlook remains optimistic with projects such as Bharatmala and dedicated freight corridors.

 

With a substantial ₹2.7 trillion earmarked for renewable electricity in FY25, Dilip Buildcon foresees meaningful opportunities to leverage energy infrastructure capabilities.

 

The infrastructure sector, particularly the engineering, procurement, and construction (EPC) segment, continues to face challenges. There has been a slowdown in new order inflow due to muted market activity and intense competition, especially from smaller, unrecognised players entering the fray as a result of lowered bid standards. This situation disproportionately affects larger, established companies like Dilip Buildcon, which operate under higher compliance and execution standards.

 

Despite these short-term headwinds, key government agencies maintained their construction pace, reaffirming the nation’s long-term efforts toward infrastructure-led growth. Looking ahead, the outlook is strengthening. The government’s increased infrastructure allocation and renewed focus on execution quality through revised eligibility norms are expected to revive order activity. Opportunities are expanding across highways, tunnels, coal mining, irrigation, urban transit, digital infrastructure, and optical fibre connectivity, Dilip Buildcon said in its FY25 annual report.

 

With a proven track record of execution, strong positioning in high-potential sectors such as coal mining and tunnelling, and entry into emerging areas like optical fibre under BharatNet, Dilip Buildcon is strategically placed to participate in India’s next phase of infrastructure expansion. The company’s participation in a ₹1 trillion-plus bidding pipeline reflects this readiness, it added.