Dilip Buildcon Wins Kerala Corridor Project; SEBI Analyst Warns On Execution Risks, Profit Booking

Dilip Buildcon, through its joint venture with PSP Projects, was declared the lowest bidder for a ₹1,115.37 crore project by the Kerala Industrial Corridor Development Corporation. The timeline for the project is 42 months.

At the time of writing, Dilip Buildcon shares pared early gains and fell 0.4% on Wednesday.

The order covers design, construction, testing, commissioning, and operation and maintenance of infrastructure works at Pudussery Central and Kannambra of the Palakkad Node in Kerala on an engineering, procurement, and construction (EPC) basis. 

The project is a segment of the Chennai–Bengaluru Industrial Corridor, which is being extended to Kochi via Coimbatore. 

Fundamental And Strategic Implications

According to SEBI-registered analyst Varunkumar Patel, the order represents a material boost to Dilip Buildcon’s order book and aligns well with the government’s infrastructure and corridor development push. 

He said working through the DBL–PSP JV structure limits the capital burden and spreads execution risk, although JV risks remain.

Patel pointed out that Dilip Buildcon posted a 93.6% year-on-year rise in the first quarter, with a net profit of about ₹271 crore, aided by margin expansion and an exceptional gain. 

He further said the company has been adding large EPC, metro, corridor, and highway orders in the past few months, which has given some depth to the overall project pipeline.

The analyst also warned of potential execution delays, a cash crunch due to working capital pressure, and cyclicality resulting from dependence on government capital expenditure cycles. Patel also noted that the stock’s sharp spike on the news could invite profit booking.

Technical View

He highlighted that Dilip Buildcon shares are currently consolidating after the order-driven spike. 

At around ₹555, the stock is holding close to its volume-weighted average price of ₹562. Immediate resistance lies in the ₹587–₹590 zone, which could open the path toward ₹605–610 on strong volumes. 

Support is seen near ₹540, with deeper support at ₹520.

The relative strength index (RSI) is around 67, suggesting positive momentum, while the moving average convergence divergence (MACD) indicator also remains strongly positive. 

Patel said the stock would need volume strength above ₹590 to confirm a fresh uptrend.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.

Dilip Buildcon’s stock has risen 22.1% so far in 2025.

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