MOSL: DILIP BUILDCON (Not Rated)-Execution capabilities par excellence-Target to be debt-free over next three years
​Dilip Buildcon: Execution capabilities par excellence; Target to be debt-free over next three years
(DBL IN, Mkt Cap USD0.7b, CMP INR349, Not Rated)
We recently met management of Dilip Buildcon (DBL) to get a perspective of the business. We also visited the Guna-Biaora road and Mohanpura dam sites and were impressed with the company’s execution capabilities. Key highlights:
Differentiated business model with strong execution capabilities
DBL operates under a differentiated business model with 100% in-house execution capabilities. This, along with an employee base of 25,000 and an asset base of 8,500 construction equipment, eliminates the need to outsource work to subcontractors, helping complete the projects on and before time. DBL has been able to complete ~47 projects (covering 5,612km; 90% of the projects undertaken) ahead of schedule and thus claim early completion bonus from the authority.
Focus on intensive pre-bidding survey to ensure selection of right projects
The company has developed criteria to carefully select projects so as to ensure that the bids submitted are rational and that the projects, if won, are executed on time. Before bidding, the company follows a process to visit the site, ensure that clearances are in place, and check about land availability and project clustering potential. Management is also very selective in terms of regions, not bidding for the projects in Odisha, north-east, Kerala and Himachal Pradesh. The pre-bidding survey helps ensure that it selects the right projects and execution does not suffer.
Dilip Buildcon Ltd. Dilip Buildcon Limited is an India-based company engaged in the business of infrastructure facilities on engineering procurement and construction (EPC) basis. The Company undertakes contracts from various government and other parties and special purpose vehicles promoted by the Company. It operates through construction and engineering contracts segment. Its business of construction and development of real estate is at nascent-stage and no operations have commenced. Its subsidiaries include DBL Ashoknagar-Vidisha Tollways Limited, DBL Bankhlafata Dongawa Tollways Limited, DBL Jaora Sailana Tollways Limited, DBL Mundi-Sanawad Tollway Limited, DBL Nadiad Madosa Tollways Limited, DBL Sardarpur Badanwar Tollways Limited, DBL Silwani Sultanganj Tollways Limited, DBL Sitamou Suwasara Tollways Limited, DBL Uchera Nagod TollwaYs Limited, DBL Betul SarniTollwaYs Limited, DBL Tikamgarh Nowgaon Tollways Limited, Suryavanshi Infrastructure Pvt. Limited and Bhavya Infra & Systems Private Limited.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.