Dilip Buildcon Shares Rally 4% as Lowest Bidder for Rs 702 Crore Gujarat Flood Control Project

Why It Matters

The award boosts Dilip Buildcon's order book and validates its competitive pricing, while the low valuation offers a potential entry point for investors seeking exposure to India's infrastructure growth.

Key Takeaways

• Lowest bidder for ₹702 crore Gujarat flood project
• Project uses EPC model, 24‑month timeline
• Shares rose 4% after award announcement
• P/E 5.01, indicating low valuation multiples
• Net profit jumped 620% YoY despite revenue dip

Pulse Analysis

The Gujarat flood‑control contract marks a strategic win for Dilip Buildcon, reinforcing its position in the competitive Indian infrastructure sector. By securing the L‑1 bid for a ₹702 crore embankment project, the company demonstrates its ability to deliver large‑scale EPC assignments on tight timelines. This order not only diversifies its revenue stream but also aligns with the state’s broader push to fortify flood‑prone regions, a priority that could translate into further public‑sector opportunities.

From a financial perspective, the market reaction underscores the premium investors place on order wins amid a generally subdued construction landscape. Dilip Buildcon’s shares jumped roughly 4% and now trade at a P/E of just over five, a stark contrast to higher‑multiple peers. Such a discount valuation, combined with a robust 620% YoY profit surge, suggests the firm is capitalising on cost efficiencies and higher‑margin projects, even as top‑line growth faces seasonal headwinds.

Technical indicators, however, hint at short‑term caution. The stock sits below all eight simple moving averages and an RSI of 39.7 signals a neutral‑to‑slightly‑oversold condition. Traders may view this as a buying opportunity if the company can sustain its profitability momentum and convert the Gujarat project into a timely, on‑budget delivery. Overall, the award enhances Dilip Buildcon’s growth narrative while offering a potentially attractive entry point for investors targeting the long‑term expansion of India’s infrastructure spending.

Dilip Buildcon shares rally 4% as lowest bidder for Rs 702 crore Gujarat flood control project

By Ritesh Presswala, ETMarkets.com · Last Updated: Feb 18 2026, 09:36 AM IST

Shares of Dilip Buildcon are likely to draw investor attention in Wednesday’s trading session after the company was named the lowest bidder for a significant flood‑control project in Gujarat worth ₹702 crore.

The firm has been declared the L‑1 bidder for a tender issued by the Narmada Water Resources, Water Supply & Kalpasar Department, Government of Gujarat. The project involves constructing a flood‑protection embankment along the Narmada River in Bharuch district. Execution will follow an EPC (Engineering, Procurement, and Construction) model, with a total project cost of ₹702 crore, excluding GST, and is expected to be completed over a 24‑month period.

This initiative forms part of Gujarat’s broader efforts to enhance flood‑protection infrastructure. Being a domestic EPC contract, it is a standard engineering and construction project with no involvement of the company’s promoters or promoter group in the awarding authority, and no related‑party transactions are associated with this order.

On Tuesday, Dilip Buildcon shares closed at ₹434.95 on the NSE, registering a modest gain of 1.02% for the day.

In terms of valuation, the stock’s price‑to‑earnings (P/E) ratio stands at 5.01, the price‑to‑sales (P/S) ratio at 0.62, and the price‑to‑book (P/B) ratio at 1.34. These metrics suggest that the market is valuing the company at relatively low multiples compared to its earnings, sales, and book value.

From a technical perspective, the daily Relative Strength Index (RSI) is 39.7. Since an RSI below 30 generally indicates that a stock is oversold and above 70 signals overbought conditions, the current level points to a neutral‑to‑slightly‑oversold territory. Additionally, the stock is trading below all eight of its simple moving averages (SMAs), suggesting short‑term bearish momentum and caution for traders relying on trend‑following strategies.

Looking at recent financial performance, Dilip Buildcon reported revenue of ₹2,308 crore in the December 2025 quarter, a 12.4% decline year‑on‑year. However, the company’s net profit surged 619.9% YoY to ₹830 crore, highlighting strong profitability improvements despite the dip in top‑line revenue.

The company’s strong order wins and robust profitability in the last quarter could keep investor interest high, despite some short‑term technical weakness in stock movement.

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