Geojit recommended is bullish on PNC Infratech recommended buy rating on the stock with a target price of Rs 182 in its research report dated July 02, 2020.
Geojit's research report on PNC Infratech
Revenue grew by 8% YoY despite 10 days of execution impact due to lockdown in Q4FY20. EBITDA margins declined by 55bps to 13.5% due to higher raw material and employee cost. 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 9x on FY22E EPS and BOT/HAM projects at 0.5xP/B and revise our rating to Buy.
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