Dilip Buildcon Ltd.
ISIN: INE917M01012 • Market Cap: ₹6,759 Cr
The 5-Pillar Quality Audit for Dilip Buildcon Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (19.1%), Return on Capital Employed (14.9%), and equity compounding (12.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.93 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-6.3%) and 3Y PAT CAGR (198.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 5.70 vs PEG of 0.31 and Dividend Yield of 0.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 63.1%, backed by 7.1% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 198.3%)
Net earnings have compounded at 198.3% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 5.70)
Trading at a P/E multiple of 5.70, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 1.93)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Topline Stagnation (3Y Sales CAGR: -6.3%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking DBL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 67/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Construction Sector Peer Comparison
Compare DBL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Dilip Buildcon Ltd. (DBL)Current | 67/100 | ₹6,759 Cr | 5.70 | 14.9% | 1.93 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: Dilip Buildcon Ltd.
Q:What is the 5-Pillar Fundamental Score for Dilip Buildcon Ltd. (DBL)?
Dilip Buildcon Ltd. has a RupeeTools Fundamental Score of 67/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (76/100), Financial Health (47/100), Growth (60/100), Valuation (95/100), and Ownership Quality (68/100).
Q:Is DBL fundamentally strong for long-term investment?
DBL currently holds a moderate quality rating of 67/100. While it operates in the Construction sector, investors should monitor its debt health before initiating long-term positions.
Q:Does DBL pass the Coffee Can Investing filter?
No. DBL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does DBL compare against other Construction peers?
Within India's Construction sector, DBL trades at a P/E of 5.70 and generates an ROCE of 14.9%. Compare its 5-Pillar score of 67/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.