At 9:45 AM, the stock was trading 6.83 per cent higher at Rs 373.10 as compared to 0.7 per cent gain in the S&P BSE Sensex. Aroun 97,000 shares have changed hands on the NSE and BSE combined, so far.
In the June quarter of 2020-21 (Q1FY21), Dilip Buildcon's net profit declined by 49.67 per cent on a year-on year (YoY) basis to Rs 50.47 crore while consolidated net revenue stood at Rs 2,099.94 crore, down 13.81 per cent YoY.
On the operational front, the company's earnings before interest, tax, depreciation, and ammortisation (Ebitda) stood at Rs 461.12 crore during the quarter while Ebitda margin came in at 21.96 per cent.
After the results announcement, Anand Rathi said that proven execution capabilities and ample revenue assurance hold good for the company but the stock itself had limited potential.
"Dilip’s on-roll workforce meant site mobilisation was quick and the recovery curve for execution efficiency is being further aided by access to owned equipment bank. These and the recent strong order addition raise hopes of a better time, but a surge in net debt proved to be a hitch. This was considered a short-term blip (procedural delays with payments), and efforts are underway to check any expansion in the balance sheet (assets on the block)...We alter our target price from Rs 368 to Rs 369," it said.