AgenciesAxis Securities has buy call on PNC Infratech with a target price of Rs 365. The current market price of . is Rs 256.45.
PNC Infratech Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 6571.25 Crore) operating in Infrastructure sector.
Ltd. key Products/Revenue Segments include Contract Revenue, Material and Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 2066.15 Crore, down -8.06 % from last quarter Total Income of Rs 2247.33 Crore and up 39.15 % from last year same quarter Total Income of Rs 1484.81 Crore. Company reported net profit after tax of Rs 240.66 Crore in latest quarter.
Investment Rationale
Over the years the company has developed itself as one of the premier EPC player in the road sector and has also diversified its revenue stream to other segments including water supply and irrigation. With a robust order book, better execution credentials, crystal clear focus on road segment, govt thrust on developing highways and expressways , asset monetization plan, and a lean balance sheet, the brokerage expects PNCIL to report Revenues/EBITDA/APAT growth of 19%18/%26/% CAGR respectively over FY21-24E. It maintains a BUY on PNCIL and value EPC business at 10.5x FY24E EPS and HAM portfolio at 1x book value to arrive at a target price of Rs365/share, implying an upside of 43% from the CMP.
Promoter/FII Holdings
Promoters held 56.07 per cent stake in the company as of 30-Jun-2022, while FIIs owned 10.48 per cent, DIIs 28.57 per cent.
PNC Infratech Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 6571.25 Crore) operating in Infrastructure sector.
Ltd. key Products/Revenue Segments include Contract Revenue, Material and Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 2066.15 Crore, down -8.06 % from last quarter Total Income of Rs 2247.33 Crore and up 39.15 % from last year same quarter Total Income of Rs 1484.81 Crore. Company reported net profit after tax of Rs 240.66 Crore in latest quarter.
Investment Rationale
Over the years the company has developed itself as one of the premier EPC player in the road sector and has also diversified its revenue stream to other segments including water supply and irrigation. With a robust order book, better execution credentials, crystal clear focus on road segment, govt thrust on developing highways and expressways , asset monetization plan, and a lean balance sheet, the brokerage expects PNCIL to report Revenues/EBITDA/APAT growth of 19%18/%26/% CAGR respectively over FY21-24E. It maintains a BUY on PNCIL and value EPC business at 10.5x FY24E EPS and HAM portfolio at 1x book value to arrive at a target price of Rs365/share, implying an upside of 43% from the CMP.
Promoter/FII Holdings
Promoters held 56.07 per cent stake in the company as of 30-Jun-2022, while FIIs owned 10.48 per cent, DIIs 28.57 per cent.
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