Dilip Buildcon Ltd IPO Message Board (Page 32)

Sell this application in Grey market is the best choice.

I am confident of good listing. The promoters are capable of managing good listing.

Apply for listing gains. IIFL the biggest chor is the lead manager.

Listing to achieve hi hoge

RBL ka issue kab open hoga.. any date

10th August, 2016

Thanks Sir... hope for best for these new coming IPO

DBL GMP 22-24

RBL GMP 34-36

10th Feb 2017 or 10th Aug 2016..

eagle eye ur applying in this ipo

RATE AND LOT SIZE OF RBL BANK.

DBL ki application lgani chahiy ya nhi
kis price pr open ho skta h DBL

Pls guide to me

thanks

No body can surely reply on this.. Its high risk high return IPO.. Take a Risk, you may end up with either good profit or big loss..

Debt to Equity more than 3.5 and negative free cash flow for past years are sufficient for me not to apply for this IPO...and i dont like space such as high competition and huge capital intensity ..surely there is no moat for this company...So No from me...

DBL GMP 20 - 22

AET GMP 330 - 335

RBL GMP 32 - 35

Advanced Enzyme Technologies

RBL ka issue kab open hoga ?? any date

J. Kumar Infraprojects
Revenue      14,262.84
FV      5
RONW (%)      8.04
NAV      169.60
EPS      14.91
CMP      223
P/E      14.96

PNC Infratech
Revenue      24,112.42
FV      10
RONW (%)      16.50
NAV      255.28
EPS      42.11
CMP      556
P/E      13.20

KNR Constructions
Revenue      10,375.35
FV      10
RONW (%)      18.13
NAV      247.83
EPS      44.94
CMP      574.50
P/E      12.78

IRB Infrastructure Developers
Revenue      52,541.48
FV      10
RONW (%)      13.17
NAV      137.35
EPS      18.09
CMP      212.75
P/E      11.76


Dilip Buildcon
Revenue      43,489.81
FV      10
RONW (%)      19.64
NAV      85.48
EPS      16.79
IPO Price      219
P/E      13.04

Nice..

I will add one more thing....the smaller the company, the relatively easier it is to maintain & grow its order book. So, a small cap is preferable ....but there are two prerequisits: (1) a clean b/s &; (2) it should be strong enough to independently bid for projects & therefore not overly dependent on sub-contracts from larger players...

The most vigorous phase in the life cycle of a construction company is, I think, when it graduates from a tiny/small cap to mid cap.

Thank you EagleEye for this very helpful and informative message

I shall NOT be applying in Dilip Buildcon IPO
I will be applying in S P Apparels IPO

thanks for your clear view .... :-)

thanks for your clear view .... :-)

Most of the domestic MFs and Insurance companies are avoiding the issue (confirmed with them), hence chances of very less subscription in QIB quota. It may even under-subscribe if couple of MFs (which are planning to apply) pull out at last minute.

Read my earlier comments for the reasons to avoid the IPO:

103. Chakri Ideas Jul 26, 2016 1:07:10 PM IST Reply
My view on Dilip Buildcon:

1) Low margin: Though EBITDA margin is high @20-21%, EBIT margin is at lower level due to higher depreciation resulting from higher fixed assets as the company owns almost all of its equipments.
2) Weak Balance Sheet: It has higher debtor days and inventory days, resulting in stretched balance sheet.
3) Leverage: Current D/E is 2.3x. It will raise Rs 400cr from fresh equity out of which Rs 200cr would be used to pare debt resulting in better D/E of 1.45x. However, the company will have to infuse Rs 600cr in its BOT projects in next 3 years, again increasing D/E.
4) Politically exposed: The promoter of the company is close to BJP government in MP. His name has also cropped-up in Vyapam case. This makes it politically exposed.

Hence, I would avoid the IPO.

Refer this for DBL...

107. gamble Jul 23, 2016 3:52:04 PM IST Reply
Dilip Buildcon Ltd IPO


Initial comments :

NII 15% !!!!
GMP 48-50(as said) ...20% return ..huh?? (i do not believe)

Will come down to 10-20..my view..




Now....if everything will remain allright then buy below 195 on listing day for 4-5% intra gain.

@ Bangalore King & IPO Bhavnagar,
Great posts!

I was intrigued with what the company has achieved in such a short span. But, the ''end'' should be judged with the ''means'' used to achieve it. If I invest, I will be directly rewarding the corrupts.

The promoter has close ties to alleged murderers....was found with 1,000 Cr unaccounted cash....many secret files pertaining to govt officials, projects etc were found in various raids conducted at his place...I stopped scouring for more dirt after reading these!

OK. Slight correction....1000 Cr unaccounted wealth was seized from Dilip Buildcon & one other Contractor. But u get the drift, right?

READ all of YOU very carefully !

Too much to wonder and worry

Dilip Buildcon’s (DBL) high order book and standalone revenue CAGR
over FY11-15 (53%/ 57%) has not yielded sufficient cash (cum. pre-tax
CFO/EBITDA of 40%). Higher-than-industry receivable and inventory
days result in industry-leading cash conversion cycle (112 days). Whilst
growth prospects appear strong, we are surprised and uncertain of
sustainability of industry-high EBITDA margins (FY15: 22% vs 10-14%
for peers); meaningful unwinding of working capital is unlikely given
changes in NHAI payment rules hence standalone debt/ equity (FY15:
2.5x vs <0.8x for peers) poses risks to net margins. IPO proceeds
should help reduce debt but equity will be needed to fund the recently
won NHAI BOT project (`3bn needed). Corporate governance concerns
emanate from pending litigations against promoters and media
articles suggesting political connectivity and questionable behavior.

Competitive position: MODERATE Changes to this position: STABLE

A fast growing contractor with a burgeoning order book
DBL’s order book has remarkably elevated at >50% CAGR over FY11-15 and
DBL now ranks amongst the largest road EPC contractors in India (Sep-15 book
of `103bn). Though its book-to-bill is only marginally above peer average, its
order book to net worth is materially higher (10x). An analysis of orders won
from NHAI indicates that DBL has bid well below NHAI’s indicative cost.
Revenue CAGR of 57% over FY11-15 is well ahead of peers.

Strong order book, but can the balance sheet support it?
DBL’s inventory and receivable days are well above peers. So, its cash
conversion has been less than ideal (pre-tax CFO/EBITDA: 38% over FY11-
1HFY16) and leverage is higher (2.5x D/E in FY15 vs 0.2-0.8x for peers). Bulk
of IPO proceeds of up to `4.3bn will be utilized to retire debt and fund working
capital. Internal accruals will need to increase materially to fund its new large
NHAI BOT project (`3bn of equity required).

High margins weighed down by interest cost
DBL’s 2x peer-set margins are driven primarily by superior gross margins.
Given road dependence (standard NHAI jobs, high competition, limited
sourcing advantages), limited scope of bonus claims and high dependence on
sub-contracting, we find margins too high. High standalone leverage and
finance cost (15% of average debt in FY15) have rendered PAT margins in line
with peers, maintaining high risk to net margins.

Reduced IPO size; no progress in leverage, cash, corporate governance
Reduced fund-raise of `4.5bn from `6.3bn has lowered fresh funds into the
company more than for exiting investors/promoters. We believe money raised
from minorities should be used to strengthen the balance sheet or protect from
future shocks of growth, margins, and cash (very frequent in this industry).

"""""" Valuation should be at discount to peers for corporate governance issues

DBL GMP 20RS SELLER

Linkintime ka ipo kab ayega dekho...
Surprisingly from last 5-7 ipos everytime register is linkintime...

Accha paisa bana rahi ha company is waqt...

seems karvy is banned for ????????

350 Kostak. Please sell if you have contact in Grey market.

GMP 35

DILIP BUILDCON LTD. - IPO Analyst Meet, held at The Taj, Colaba on 25/07/16 :

On-the-Spot Takeaways :

The Background:

● The business was started by Dilip Suryavanshi in the late 80s. Dilip Buildcon Ltd was incorporated in 2006.
● DBL has a total Order Book of Rs.17500 cr, their projects span 12 states as on 31st March 2016.
● 85% of the projects are in the Roads segment.
● 90% of the orders are from the Govt, especially NHAI.

Whats unique about them:

● DBL does not Sub-contract any work at all.
● They are a fully vertically integrated player, using ONLY their own equipment, owned by them.
● They have one of the largest equipment banks in the country totalling 7345 vehicles.
● Almost 20000 employees working full time, of which 14000 are drivers and operators.
● Are preferred clients of some of the largest names in the global equipment space such as Schwing Stetter, Wirtgen, Vogele. According to them they are Ashok Leyland''s biggest client in India.
● This large equipment bank from a select few global brands help them maintain quality, execution speed and lower maintenance costs.
● This also helps in quick turnaround increasing equipment utilisation rate.
● Their execution is mostly ahead of schedule helping them earn nearly Rs.200 cr annually out of "Early Completion Bonus".
● This large pool of equipment and employees helps them save costs by sharing manpower across projects and also through co-locating projects.

The Team and teamwork :

● 20000 employees
● Constant training on new and old equipment.
● Facilities such as Family Medical Insurance and Daughters'' Marriage Allowance of upto 2 lakhs.
● This has arrested attrition among the drivers to a large extent.

Other key points of importance :

● With best in the class equipment, the average life of their assets is 8-10 years as against 3-4 years of the other players.
● Apart from the EPC portfolio DBL has a BOT portfolio with a debt of less than Rs.1150 cr in these.
● Annuity inflows from these exceed Rs.200 cr per annum.
● The residual life of these BOT projects are around 12 years.
● DBL has the lowest Annual Maintenance Cost per Kilometre of road at Rs.16,000 per km per annum, 84% lesser than the maximum of Rs.100,000 per km per annum prescribed by the NHAI.

Higher Margins compared to peers : DBL lays claim to higher margins as compared to its peers for the following reasons :

● No sub-contracting so inflows are fully retained.
● Regular "Early Completion Bonus" helps increase margins by upto 2%.
● They are the largest clients of HPCL, BPCL and IOC for sourcing Bitumen, so they enjoy good bargaining power on costs.
● Being among the biggest users of equipment from Caterpillar, Wirtgen, Schwing Stetter and Ashok Leyland, DBL enjoys lower maintenance costs.

The Road Ahead :

● High margins will not come dow anytime soon.
● Last year''s (2015-16) top line growth of 56% may not be sustainable, but the focus is more on quality than quantity.
● Standalone debt is at around Rs.2513 cr with a D/E of 2.51. This will fall to 2.27 in the current year.
● The Working Capital Cycle has been reduced from 181 days to 136 days and can be brought down to around 110 days.

Whatever you say sir , one simple rule No GMP no profit, so don''t apply

This was just a forwarded message.. Forwarded as received.. No recommendations.. ON the very first day, I communicated that I prefer SPAL to DBL

IS THIS THE RIGHT LEVEL TO ENTER LAMBODHARA TEXTILES. IT IS TRADING@110
THANKS.

The company & it''s promoter have amassed a huge wealth through nexus with politicians & bureaucrats. The blood money has fuelled a vigorous growth in this (company) money laundering machine....

There is not an iota of doubt about its promoter''s lack of integrity. I can see so many news articles exposing their shenanigans.

The company''s business model is interesting in some ways but their shady past might catch up with their future.

Don''t invest if u believe in Karma :)

Well said bro. As said earlier talking about this company is doubting own intelligence. Not worth a company to invest in. As said a few days ago, I m not applying and so would be advice to others. Again, well put up point.