Dolat Capital is bullish on PNC Infratech has recommended buy rating on the stock with a target price of Rs 199 in its research report dated March 12, 2018.
Dolat Capital's research report on PNC Infratech
PNC Infra, primarily into road EPC and HAM shall behold spike in growth in revenue from Q4FY18E as appointed date for all projects (except Chakeri-Allahabad HAM project) will be in place by Mar’18. Albeit, the revenue got impacted in FY17 (down 16.1%) and 9MFY18 (down 18%) with a delay in appointed date for many projects won in FY16 and FY17 which now is not a hindrance. The company will continue to focus on road sector and expect fresh order inflow of `50bn/ `80-100bn in Mar’18/ FY19, respectively given the huge tender pipeline and opportunity.
Outlook
Though we maintain our SOTP of `199 (Exhibit 1), recent dip in stock price provides 28% upside and accordingly we upgrade our rating from Accumulate to Buy.
For all recommendations report, click here
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