PNC Infratech Ltd. share price target

PNC Infratech (PNCL) Q4FY21 operationally (EBITDA) was in-line with our and consensus estimate. For FY21 execution (revenue) was flat YoY and PNC has guided for revenue to increase by 20% YoY. PNC has strengthened its in-house execution and despite pandemic it has increased its employee strength by 15% to 9,599 in FY21. On the ground execution was not impacted from Covid 2nd wave and PNC guided toll revenue to increase from July 21. Ordering was strong in the sector and PNC is L1 in orders of Rs50bn. Firm Order book at Rs116bn equals 2x TTM Revenue. We maintain BUY rating with unchanged TP and EPS. In SOTP based TP, we value EPC/construction...

Order book provides robust revenue visibility in medium term As on Q4 end, PNC's order book (OB) was at | 11,648 crore. However, this OB excludes: a) two EPC projects of Delhi Vadodara alignment worth | 1,548 crore and b) irrigation and water projects worth | 3427 crore. Including these projects, the OB is robust at ~ | 16,623 crore (OB/TTM revenues: 3,4x) and provides revenue visibility over the next three years. The order book is well diversified with HAM, EPC, water & canal forming 45%, 27%, 28%, respectively. The company expects additional orders worth | 8000-9000...

PNC reported a strong revenue growth of 42% YoY in Q4FY21 (better than estimate) as project execution improved due to normalcy in operation post Covid. Order book (incl. L1) remains healthy at Rs16,000cr which is...

Management guided for 20% YoY revenue growth in FY22 (excluding possible impact of Covid third wave); EBITDAM to be in range of 13.5-14% PNC Infratech (PNCL) reported decent set of numbers with revenues marginally below estimates, while EBITDAM coming in-line at 14.1%. Toll...

Growth prospects upbeat

We expect strong execution in Q4FY21 for our infra coverage universe with expected revenue growth of 22.2% YoY (average) vs 6.1% in Q3FY21. Operating leverage will enable stable EBITDA margins despite inflationary environment. Adjusted PAT is expected to increase by 87.5% YoY led by...

Q3FY21 revenue increased by 8.6% YoY (in-line with estimate) to Rs1,322cr supported by strong execution with labour availability at 100% pre-Covid level. The management expect execution to be strong in the coming quarters on account of strong order inflows and expectation of appointed date for balance orders in March-April 2021. The management expects FY21 revenue will be equal to last year revenue and expect FY22 revenue growth to be at 20% YoY. We expect execution will pick up in the coming quarters as most of the HAM projects are under execution stage with average ~90%...

Order book gives robust revenue visibility in medium term As on Q3 end, PNC's order book (OB) was at | 9,852 crore. However, this OB excludes: a) Challakere-Hariyur HAM project (EPC value: | 935 crore), b) Meerut Nazibabad HAM project (BPC: | 1412 crore), c) two EPC projects of Delhi Vadodara alignment worth | 1,548 crore, and d) irrigation and water projects worth | 3766 crore. Including these projects, the OB is robust at ~| 1,8000 crore (OB/TTM revenues: 4.1x) and provides revenue visibility over the next three years. The company has received orders worth | 7700...

Company expects AD for all new projects (land availability at 80 -90%) by MarApr'21 leading to entire OB moving into execution. PNC Infratech (PNCL) reported strong set of numbers with revenues in line with estimates at Rs13.2bn while EBITDAM coming in at 13.5%. Despite...

PNC remains our preferred pick in the EPC space given its robust order book, healthy return ratios and lean balance sheet. Notwithstanding its asset monetisation plan fructification, sufficient internal accruals from current order book is enough for equity infusion. We maintain our BUY rating with a revised SoTP target price of | 210/share. We value its construction...