ICICI Direct's research report on PNC Infratech
PNC Infratech’s (PNC) Q1FY21 performances, notwithstanding lockdown led execution impact, was better-than-expected. Revenues at Rs 905.3 crore, were down ~31.5% YoY (better than our estimates of ~51% decline), with the decline attributable to lockdown due to Covid-19 and labour unavailability. EBITDA margin was higher at 13.2% (down 35 bps YoY) but better than estimates of 9% on account of better topline and lower employee expenses. PAT of Rs 60.1 crore (down 40% YoY) was higher-than-expected led by superior EBITDA, lower depreciation and higher other expenses.
Hence, we maintain our BUY rating on the stock with a revised SoTP target price of Rs 200/share. We value its construction business at Rs 159/share (at 5x FY22E EV/EBITDA implying ~10x FY22 EPS).
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