PNC Infratech Ltd. share price target

We expect healthy revenue/ APAT CAGR of 13.9%/ 16.8% over FY2023E. Moreover, revenue/ APAT growth slows down to 1.2%/ -8.1% in FY21E due to lockdown impact and jumps back to revenue/ APAT growth of 22.4%/ 38.7% in FY22E driven by stabilization of labour and supply chain issues coupled with execution from 4 HAM/ 2 EPC/ 1 Irrigation project where AD is expected between Dec'20/ Jan'21 and 1 water supply project in Q3FY21E. The current core construction valuations of 10.5x/ 7.6x FY21E/ FY22E EPS are attractive. Thus, we...

As the impact of the virus subsides and activities slowly resume towards normalcy, strong order flow under the aegis of the National Infrastructure Pipeline, focus on infrastructure, and lower execution impediments should help in revival of the sector. The infrastructure industry is likely to normalize by Q3FY21, subject to the containment of the spread. Due to the COVID-19 led disruption, revenue impact for the infrastructure sector for FY21 is estimated at 15-20%, with H1FY21 revenue being severely impacted. The order inflow which impacted in H1FY21, is expected to pace...

PNC remains our preferred pick in the EPC space given its robust order book, comfortable working capital cycle, healthy return ratios and lean balance sheet. Notwithstanding near term hiccups on account of Covid-19, PNC is likely to tide over with resilient fundamentals. While monetisation of HAM assets could be delayed in near term, we do not see it as a major issue with sufficient internal accruals from current order book enough for equity infusion. Hence, we maintain our BUY rating on the stock with a revised SoTP target price of | 200/share. We value its construction business at...

returning execution efficiency are some levers making a case for PNC to set sailing again on the growth trajectory, sooner than later. Even with the stretched working capital (due to the pandemic disruption and seasonality), the balance sheet is still in shape to help execution efficiency return at the earliest, and take care of a large part of equity required for the hybrid annuity portfolio. Standalone operations hold potential to generate positive CF, and look good to suffice for the balance needed. With no change in long-term fundamentals, and...

Q1FY21 revenue declined by 32% YoY as execution was impacted due to lockdown and labour availability. EBITDA margins declined by 35bps to 13.5% due to fixed overhead expenses while other expenses declined by 38% YoY. Executable order book stood healthy at Rs15,525cr which is 3.2x FY20 revenue, provides revenue visibility....

Discussions with prospective investors for stake sale in Gaziabad-Aligarh expressway reached advanced stage, expect to sign deal in next 2 months. PNC Infratech (PNCL) posted strong performance beating our and street estimates on all fronts despite impact of Covid-19 pandemic. Execution came...

EBITDA margin was stable YoY at 13%. And PAT at Rs0.6bn declined by 40% YoY. Q1FY21 revenue was impacted from shutdown in the initial 20 days of Q1. There is sign of pick up in execution and complete normalcy is expected post monsoon. Strong order book: PNCL order book at Rs78bn gives a revenue visibility over the next 2 years. And, order book including projects pending approval stands strong at...

We expect healthy revenue/ APAT CAGR of 9.1%/ 9.6% over FY20-22E. Moreover, revenue/ APAT growth significantly slows down to 0.1%/ 9.8% in FY21E due to lockdown impact and jumps back to revenue/ APAT growth of 19.0%/ 33.3% in FY22E driven by stabilization of labour and supply chain issues coupled with execution from 4 HAM/ 2 EPC projects where AD is expected in Jan'21/ Oct'20. Though the stock has increased ~20% since our Q4FY20 result update released on 27 Jun'20, the current core construction valuations of 10.8x/ 8.1x FY21E/ FY22E EPS are attractive. Thus, we maintain Buy, with SOTP of Rs271 (12x...

during Q1 FY21 (considering covid19 related impact). Its revenue declined 31.5% yoy (to Rs.9.1bn) on standalone basis, largely impactedbyoperationalshutdownduringinitial20daysofArp'20....

Order book stood healthy at Rs15,629cr (incl. L1 ~Rs7,000cr) which is 3.2x FY20 revenue, provides revenue visibility. Adj. PAT growth was moderate at 3% YoY to Rs76cr due to increase in depreciation and interest costs. Due to near term hindrance on execution we reduce revenue estimate for FY21E/FY22E by 24%/14% respectively. We expect a rebound in earnings from H2FY21 supported by healthy order book. We value standalone EPC business at a P/E of...