For the economic growth of any country, transportation of goods are critical and it is imperative that the road network is strong and widely developed, with sufficient budgetary spending from the Govt. as well as through the PPP model.The road sector as a whole, has seen tremendous growth over the last decade and will continue to do so, with the Govt. focusing on infrastructure development with a serious boost in the form of the Bharatmala Project. Road projects present an opportunity worth Rs 7 trillion[1] to be awarded over next 4-5 years.Road sector is likely to witness incremental awards in EPC and Hybrid Annuity Model (HAM) segment with continued focus of government on ramping up the award and construction. Pace of road construction has already moved up sharply in last few years from 12 km/day in FY14 to 23 km/day in FY17. The components of Bharatmala project include:One of the beneficiaries of this program will be Dilip Buildcon.Dilip Buildcon Limited (DBL) is a 30 year old company and is one of the largest road EPC contractors in India, with a sustainable business model focusing on end-to-end execution, with projects executed across 16 states and securing higher revenue share of government projects. By completing the projects ahead of schedule, DBL has received early completion bonus in 90% of its executed projects. This has reflected in its financials in the form of high EBITDA margin and RoCE among peers.The financials are decent, with understandable hiccups in the recent quarters due to GST implementation were the taxation for works contracts was changed to 18% and now has been reduced to 12%. This should see better revenues and profitability. The investor presentation[2] is very detailed with all the info needed to assess the companyu2019s current working and operational performance.Since its listing in Aug 2022. this stock has moved rapidly and has given investors an excellent return of 320%.Future Prospects and Valuations:The company is well poised to reap the benefits of the road sector development and the current tailwinds will help improve its order book tremendously. In the balance 4 months of this year, NHAI is planning to award 5500 kms of projects. This will help the company get steady flow of orders and keep the operating costs low.The current order book of company stands at Rs. 142,044 mn with government projects contributing to 81% of the total order book. This is good visibility for the future revenues of atleast 2 years.The debt on the books of the company is high, resulting in high interest costs, which is eating away the profitability. To reduce debt, the company has signed a term sheet with the Chhatwal Group Trust (Shrem Group) to divest its entire stake in 24 road BOT assets for a consideration of Rs. 1600 cr.After the stake sale, the company would continue to do the EPC of the 10 under-construction projects and O&M worth Rs. 4000 cr. With the sale of road assets, company will have sufficient funds to focus on the current EPC projects as well as the upcoming HAM projects.Trading at a P.E. of 26, with a H1 EPS of Rs. 17.42, the company will better its EPS in H2 2022. with better execution. A Rs. 36.6 EPS for the full year of 2017u201318 is possible, resulting in an estimated price target of Rs. 951 by Mar 2018.Since the stock is already trading at Rs. 1032, it means that the valuations are pricing in for an EPS of Rs. 39.5, which is doubtful. The only way this current price can be justified is by assuming a P.E. of 28.2., which is not too far off. But, any P.E. increase above this is a stretch at this pricing.It is upto the investors to decide on the investment at the present time, or wait for the Q3 results to get better clarity on the full year EPS and thereby, the resulting price target by Mar 2018.Note: Readers might be aware that, since I provide a detailed analysis, I donu2019t provide answer for more than one company in the same question, as it reduces the quality of answer and also due to Quorau2019s answer length restrictions. Hence, I answered the question with regards to Dilip Buildcon only.Financial data source credits: Screener. in website, Dilip Buildcon Investor Presentation for H1 FY18, Ministry of Road Transport & Highways and Business Standard News article.Footnotes[1] Cabinet approves Rs7 trillion road construction plan, including Bharatmala[2] http://dilipbuildcon.com/wps/wcm...