Hold PNC Infratech: target of Rs 287: ICICI Securities

ICICI Securities's research report on PNC Infratech

PNC Infratech (PNC) reported a weak Q2FY26, with revenue at INR 9.8bn as execution was impacted by a prolonged monsoon season and delayed start across HAM projects. EBITDA stood at INR 1.4bn. APAT stood at INR 0.8bn – below our estimate. INR 30bn of the INR 200bn order book (OB) is pending appointed dates (AD), constraining near-term execution visibility. As a result, management has sharply cut its guidance. Further, the OB now includes renewable (solar+BESS) and mining contracts (~INR 50bn), segments outside PNC’s core road EPC domain, adding incremental execution risk. Balance sheet strength remains a key comfort, with INR 56bn net worth, 0.14x net D/E, and ~INR 22bn monetisation inflows adequately covering equity commitments. Maintain HOLD with a revised TP of INR 287.

Outlook

On the back of a weaker executable OB and execution risk in its non-core segments, we maintain HOLD, with a revised target price of INR 287 (earlier 310), based on a valuation of 7x FY27E EPS and 1.2x equity invested for BOT and HAM assets.