Cyclical: deleveraged road EPC
| Peer | Status | P/E | ROE | Mkt cap | Why we do not hold it (approved text) | Links |
|---|---|---|---|---|---|---|
| Dilip Buildcon | Held | 5.80 | 19.07% | 6,875 Cr | Cyclical: deleveraged road EPC | |
| PNC Infratech | Not held | n/a | n/a | n/a | PNC is cheaper (7.5x, 0.67x P/B) but has -1.5% 5-yr sales CAGR, 7% ROE and Rs 5,170 cr borrowings; DBL offers a more diversified order book (mining/water 39%) and a clearer monetisation-led deleveraging story. | Screener · Tijori |
| KNR Constructions | Not held | n/a | n/a | n/a | KNR (10.1x, 0.69x P/B, ROE 8.7%) saw EBITDA margin fall 740 bps YoY in Q1FY27 and debtor days rise to 109; DBL's consolidated margin of 18% and InvIT platform provide more balance-sheet levers. | Screener · Tijori |
| HG Infra | Not held | n/a | n/a | n/a | HG Infra reported a Q1FY27 loss (Rs -45 cr) with debt up from Rs 1,513 cr to Rs 5,029 cr in two years (12.3x P/E); DBL's net debt is falling and its InvIT/Alpha structures reduce equity commitments. | Screener · Tijori |
Peer numbers are shown only where the peer is in the security master (fundamentals pulled); "n/a" otherwise — a peer is not added to the data pull without a research request. Reasons are quoted from the one-pager (8 Sep 2026).
We own no defence (HAL, BEL, BDL: 40–60x for government-monopsony order books), no railways (RVNL, IRFC, Titagarh) and no renewables (Suzlon, Inox Wind, Waaree) — great businesses for an extended period, but the valuations and investor faith are extreme. Among capital-goods bellwethers, ABB, Siemens and Cummins at 50–70x price a private-capex boom that machinery data (26% of GFCF) does not yet confirm. Bharat Forge is a good company at 40x with a defence premium; we prefer RK Forgings (Autos) for the same end-markets at a cyclical trough. Supreme Industries is owned only in AIF I; in the PMS Astral is the pipes expression.
All sectors we avoid or underweight →L&T (2.4%, Core): ₹7.8 lakh crore order book (+27% YoY), inflows led by West Asia and energy transition, working-capital discipline, and a multiple below the small-cap capex names it out-executes. Astral (1.0%, Core): the CPVC leader, 10x book but 50x FY28E against an 80x history, buying a volume recovery after a destocking year. Indo-MIM (0.8%, Core): 6.8% global MIM share, 25%+ margins, aerospace/medical/firearms customers, listed July 2026. Dilip Buildcon (0.6%, Cyclical): one of the largest road EPC players, deleveraged via HAM asset sales, 20x FY28E as margins normalise.
| EPC and HAM Projects Segment Market Share | 10 % | as of Mar 18 |