Buy PNC Infra; target of Rs 214: Dolat Capital
Dolat Capital is bullish on PNC Infra has recommended buy rating on the stock with a target price of Rs 214 in its research report dated November 16, 2018.
November 20, 2018 / 04:20 PM IST
Dolat Capital's research report on PNC Infra
Revenue grew sharply by 108% YoY (3rd consecutive quarter of more than 100% growth) to `5.6 bn (3.4% above estimates) led by pick up in execution on key projects. EBITDA margins down 143 bps to 13.4% (24 bps below estimates). Reported PAT grew 110.8% YoY to `351 mn primarily led by better operating performance despite rise in interest expense and increase in tax rate to 21.6% vs. 11.3%. Adjusting for MAT credit, Adj. PAT grew 153.8% YoY to `321 mn (13.0% above estimates).
We expect revenue/ Adj. PAT CAGR of 57.5%/ 43.5% over FY18-20E. Accordingly, we maintain Buy with a downward revised SOTP of `214 (Exhibit 1.
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