Dilip Buildcon Surges After BofAML Initiates Coverage — Shares of the Bhopal-based road maker rose as much as 12 percent, the most in over five months, to record high of Rs 1,124 after international brokerage Bank of America Merrill Lynch initiated coverage on the stock with a ‘buy’ for target price of Rs 1,244.
BofAML in a note said:
👍 Highway order flows to rise 2.5 times in the current financial year.
👍 Competition on the rise; prefer players with superior track record.
👍 Dilip Buildcon has seen superior execution and robust order book.
👍 Expect sales and earnings per share to compound at 24 percent and 22 percent respectively over the fiscal 2018-2020.
👍 Dilip Buildon to maintain industry leading RoEs.
👍 Valuation undemanding; stock could further re-rate.
