ICICI Direct's research report on PNC Infratech
PNC Infratech (PNC) reported a resilient Q4FY20 operating performance. Revenues grew 7.6% YoY to Rs 1157.9 crore in Q4FY20. EBITDA margins at 13.5%, down 55 bps YoY, were better than our estimate of 13%. PAT came in at Rs 76.1 crore (down 45.6% YoY) vs. expectation of Rs 58.5 crore, with beat led by superior EBITDA. The decline in PAT on a YoY basis, was largely owing to ~Rs 66 crore reversal of tax paid in earlier years, in the base quarter (Q4FY19). On a PBT basis, the decline was modest 6.5% YoY.
Hence, we maintain our BUY rating on the stock with a revised SoTP target price of Rs 175/share. We value its construction business at Rs 137/share (at 4.5x FY22E EV/EBITDA implying 8.5x FY22 EPS).
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