PNC Infratech Ltd. share price target

Orderbook at strong | 9,877 crore as of Q2FY20 PNC's order book (OB) was at | 10,950 crore as of Q1FY20, implying order book-to-bill ratio of 2.3x on TTM revenues, providing strong revenue visibility ahead. The orderbook excludes Challakere-Hariyur project with BPC of | 1,157.0 crore and road project in UP worth | 1,062 crore for which LoA was received in Q2FY20. Going ahead, the management expects ordering activity to pick up pace from December, 2020 and is aiming at order inflows of | 6,000-7,000 crore in FY20E. On the execution front, execution...

PNC Infratech's (PNCL) Q2FY20 core revenue ex-arbitral awards grew 92% YoY.

PNC has been delivering robust performance for past 6-7qtrs as entire order backlog Rs 98.7bn (ex Rs 20bn Lucknow Ring Road and Karnataka HAM) has moved into execution. With Net D/E of 0.1x end 2QFY20, PNC is well placed to take up new HAM projects. Anticipating strong improvement PNC has increased fund/non-fund based limits to Rs 10/50bn. As NHAI bidding picks up PNC is well placed to bag new orders. NWC days has improved from 97days to 59 in 1HFY20. PNC is in talks with investors to sell under construction HAM portfolio. We maintain BUY. Key risks (1) Slowdown in NHAI ordering; (2) Delay in UP state projects awards. PNC has been delivering robust performance for past 6-7qtrs as entire order backlog Rs 98.7bn (ex Rs 20bn Lucknow Ring Road and Karnataka HAM) has moved into execution. With Net D/E of 0.1x end 2QFY20, PNC is well placed to take up new HAM projects. Anticipating strong improvement PNC has increased fund/non-fund based limits to Rs 10/50bn. As NHAI bidding picks up PNC is well placed to bag new orders. NWC days has improved from 97days to 59 in 1HFY20. PNC is in talks with investors to sell under construction HAM portfolio. We maintain BUY. Key risks (1) Slowdown in NHAI ordering; (2) Delay in UP state projects awards. PNC reported 2QFY20 Rev/EBIDTA/APAT beat of 13/12/5% respectively. We maintain BUY on PNC with a SOTP based TP of Rs 340/sh (18x FY21E EPS). We have cut our APAT estimate by 9/0.4% for FY20/21E to factor in high...

Order book stands at strong | 10,950 crore PNC's order book (OB) was at | 10,950 crore (excluding Challakere-Hariyur HAM project) as of Q1FY20, 3.5x FY19 revenues, providing strong revenue visibility ahead. With appointed date for two HAM projects received in Q4FY19, execution on six out of seven HAM projects is in full swing. Furthermore, the management expects six projects viz. Dausa Lalsot, Etah Kasganj, Varanasi Gorakhpur, Nanau Dadon etc. with total order backlog of ~| 600 crore to get completed in FY20E. With such strong execution, the...

PNC Infratech's (PNCL) Q1FY20 revenue surpassed expectations, scaling a new high of Rs 13.2bn (+86% YoY) fuelled by strong execution.

PNC Infratech Ltd (PNC) has reported good set of result for 4QFY19 with revenue of Rs10.8bn against our expectations of Rs9.1bn and adj. PAT of Rs740mn vs. expectation of Rs720mn. EBITDA margin at 14.1% was in line with our estimate of 14.0% whereas reported PAT was higher due to write back of excess tax provisions of earlier years. Revenue and EBITDA, adjusted for Rs582mn bonus received in 4QFY18 is up 54% and 47% respectively. The management has guided for 45-50% growth in FY20 along with Rs60-70bn of new order inflow. We have increased our EPS estimates for FY20 and FY21 substantially by 28% and 30% respectively to incorporate higher execution. Moreover, we have not factored in the...

Q4FY19 revenue grew by 42% YoY to Rs1,076cr led by strong execution of big ticket order book. While FY19 revenue growth remain strong at 67% YoY to Rs3,097cr. The strong execution is likely to continue as PNC has already received appointed date for six HAM projects while Challakare to Hariyur project appointed date is awaited. The unexecuted potion of the HAM projects constitute 48% of the total order book. Total equity requirement for all HAM projects is Rs832cr of which PNC has already infused Rs232cr and balance will invest over the next two to three years. Additionally, Nagpur Mumbai...

Orderbook at strong | 12,210 crore as of Q4FY19 PNC's orderbook as of Q4FY19 was at a strong | 12,210 crore, implying order book-to-bill ratio of 3.9x, providing strong revenue visibility ahead. This order book does not include Challakere-Hariyur HAM project (bid project cost: | 1,157.0 crore), whose appointed date is expected by Q3FY20E. PNC received appointed date for two HAM projects in Q4FY19 Chakeri Allahabad project (TPC: | 2,018 crore) & Aligarh-Kanpur project (TPC: | 1,104 crore) in Q4FY19. With this, execution on six out of seven HAM...

PNC Infratech's (PNCL) Q4FY19 revenue surpassed expectations, scaling a new high of Rs 10.8bn (+54% YoY) fuelled by strong execution. Core EBITDA margins grew 30bps YoY to 14.1% and reported PAT was up 26% to Rs 1.4bn aided by a prior-period tax reversal of Rs 658mn. Better receivables and gross debt reduction were other key highlights. PNCL's Mar'19 order backlog stood at Rs 131.5bn and is ~93% executable. Post a stellar Q4, we upgrade FY20/...

View: Strong execution to continue; maintain Buy The revenue grew 41.7% YoY to `10.8 bn (30.7% above our estimate), due to a pick up in execution in key projects. The EBITDA margin was down 715 bps YoY to 14.1% (in line with our estimate). The core EBITDA margin (excluding early completion bonus) was up 32bps YoY to 14.1%. The reported PAT rose 25.5% YoY to `1.4 bn, primarily due to a tax write back of `658 mn in Q4FY19, leading to a decrease in the tax rate to 20.8%, vs. 18.8% in Q4FY18. Adjusting for MAT credit and tax write back, Adj. PAT was...