Shares of Dilip Buildcon climbed almost 6 percent on Monday, December 19, after the civil construction company informed that it has received a letter of acceptance (LoA) from the National Highways Authority of India (NHAI) for new hybrid annuity model (HAM) projects in the state of Karnataka, Chhattisgarh and Telangana.
During Monday’s trade, the stock opened at a price of Rs. 243 per share against the previous close of Rs. 229.35 per share. It was trading at ₹237.30, up by 3.47 percent, at 10:50 a.m. on the NSE.
The stock touched a 52-week-high of Rs. 513.65 on December 17, 2021 and a 52-week-low of Rs. 187.45 on July 1, 2022, indicating that at the current level, the stock is trading over 26 percent above its 52-week low and 53.8 percent below its 52-week high.
The stock has grown over 7 percent in the last one month. In the past six months, it has given a positive return of nearly 22 percent. However, the stock has declined almost 45 percent year-to-date.
The scope of the Karnataka project includes the construction of a 6-lane access-controlled Greenfield Highway under the Bharatmala Pariyojna. The business stated that the project's construction will take 30 months and cost ₹1,589 crore.
In the state of Chhattisgarh, the next project calls for building the four-lane Urga Palhalgaon stretch of NH-130A as part of the Bharatmala Pariyojana. Project completion is expected in 30 months, with a bid project cost of ₹1,955 crore.
The Telangana project entails widening NH-563 in Karimnagar Warangal to four lanes at the Manakondur bypass, under Bharatmala Pariyorana. The bid project will cost Rs. 1,647 crore, and it would take 24 months to complete.
Bharatmala Pariyojna is a program of the central government which is aimed at expanding the country's highway network.
In Q2 FY23, Dilip Buildcon recorded a standalone net profit of ₹64.15 crore, compared to a net loss of ₹19.31 crore in Q2 FY22. For the quarter that ended September 30th, 2022, operating revenue increased 4.91 percent year over year to ₹2,261.93 crore.
Dilip Buildcon Limited is an India-based construction and infrastructure development company. The company's projects are in the area of roads and highways, sewage treatment, dams, rails & metro, airports, etc. The company undertakes contracts from various government and other parties and special purpose vehicles promoted by the company.
According to a Mintgenie poll, 5 analysts on average have a ‘HOLD’ call on the stock.